Network Financing with Two-part and Single Tariff
University of Liege - Research Center on Public and Population Economics; Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)
ACCESS PRICING: THEORY AND PRACTICE, R. Dewenter and J. Haucap (eds.), Elsevier Publisher
This paper compares two types of access pricing: a two-part tariff where the fixed part aims to cover (part of) the network's fixed cost and the variable part covers the network's usage costs and a single tariff where both the usage and (part of) the infrastructure costs are covered by a per-unit access charge. It compares how the regulator trades-off the degree of competition induced by the access charges and the network financing.
Keywords: Access pricing, market structure, network financing
JEL Classification: L11, L51
Date posted: September 11, 2007