Competition in Communication Networks: Pricing and Regulation

42 Pages Posted: 6 Oct 2003

See all articles by Robin A. Mason

Robin A. Mason

University of Southampton - Division of Economics; Centre for Economic Policy Research (CEPR)

Tommaso M. Valletti

Imperial College Business School; Centre for Economic Policy Research (CEPR)

Abstract

By any measure, the communication sector is important. It is no surprise, then, that the communication sector has attracted the attention of both policy-makers and economists. In this paper, we argue that four characteristics of the networks that deliver communication services make this area of particular interest. We analyse the implications of networks' cost structures; the strong complementarity between their components; the demand-side externalities that arise from consumption of their services; and the social obligations attached to them. Despite the attention that the communication sector has received, many aspects of competition between networks are still poorly understood. We identify some of the key issues that will continue to trouble regulators and interest academics.

Suggested Citation

Mason, Robin and Valletti, Tommaso M., Competition in Communication Networks: Pricing and Regulation. Oxford Review of Economic Policy, Vol. 17, No. 3, 2001. Available at SSRN: https://ssrn.com/abstract=443485

Robin Mason (Contact Author)

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom
+44 23 8059 3268 (Phone)
+44 23 8059 3858 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Tommaso M. Valletti

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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