The Pricing of Inputs Sold to Competitors: Rejoinder and Epilogue

Abstract:     
In this piece, we respond to comments on our earlier essay on access pricing in telecommunications on the efficient component-pricing rule (ECPR) that appeared in the Winter, 1994 issue of the Yale Journal on Regulation. We are in essential agreement with the comments of Professor Alfred Kahn and Dr. William Taylor, and we are unconvinced by Dr. William Tye's criticisms of the ECPR. We also comment on the decision of the Judicial Committee of the Privy Council of the House of Lords, which embraced the ECPR as a principle consistent with New Zealand antitrust law. We conclude with some remarks about the likelihood that other courts and regulators, particularly those in the United States, will adopt the ECPR.

JEL Classifications: D42, K0, K21, K23, L4, L5, L12, L51, L96

Accepted Paper Series