Regulation of Interconnection of Telecommunications Networks and the Problem of Incremental Cost: other Evidence that Cooperation between Firms is Better
The tariff regulation of the interconnection of telecommunications often stumbles over difficulties linked up with the determination of the long-term incremental cost. The master of tariffs creates network effects that are benefit to operators, but these effects increase in the same way of incremental cost. This article confirms the models of Baranes and Jeanneret (1996) and Laffont, Rey and Tirole (1998) on the relevance of cooperation between operators on the interconnection charge. It is also relaunching the Price Cap track in view of the persistent asymmetric information on costs.
Telecommunications, regulation, Incremental Cost, network effects.
JEL: D4: structure du marché et formation des prix, L0: organisation industrielle généralités.