What Types of Regulatory and Pricing Strategies Work When Customers are Likely to Become Competitors?

20 Pages Posted: 16 Nov 2017  

Victor Glass

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick

Timothy J. Tardiff

Advanced Analytical Consulting Group

Date Written: November 12, 2017

Abstract

Business Data Services (BDS), formerly called special access services, are dedicated broadband lines offered by network providers to business customers and network providers. In a packet-based broadband network, the distinction between customer and competitor is being blurred, and with it the meaning of the wholesale/retail distinction. A new approach to pricing and regulatory oversight is needed that moves away from treating any market segment as passive purchasers of BDS services. The authors propose a simple pricing structure that is cost-causative, reflects the opportunity cost of using the network, and controls opportunistic behavior. While the main focus of the paper is on BDS services, the recommendations also hold in other networks industries.

Keywords: business data services, internet, pricing, regulation

Suggested Citation

Glass, Victor and Tardiff, Timothy J., What Types of Regulatory and Pricing Strategies Work When Customers are Likely to Become Competitors? (November 12, 2017). Rutgers Business Review, Vol. 2, No. 3, 2017, pp. 295-314.. Available at SSRN: https://ssrn.com/abstract=3069861

Victor Glass (Contact Author)

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick ( email )

1 Washington Park
Newark, NJ 07102
United States

Timothy J. Tardiff

Advanced Analytical Consulting Group ( email )

211 Congress Street
Boston, MA 02110
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
16
Abstract Views
79
PlumX