Loading...
Please wait, while we are loading the content...
Gradual Network Expansion and Universal Service Obligations
| Content Provider | Semantic Scholar |
|---|---|
| Author | Gautier, Axel Mizuno, Keizo |
| Copyright Year | 2011 |
| Abstract | Universal service obligations are usually not competitively neutral as they modify the way firms compete in the market. In this paper, we consider a continuum of local markets in a dynamic setting with a stochastically growing demand. The incumbent must serve all markets (ubiquity) possibly at a uniform price and an entrant decides on its market coverage before firms compete in prices. Connecting a market involves a sunk cost. We show that the imposition of a uniform price constraint modifies the timing of entry: for low connection cost markets, entry occurs earlier while for high connection cost markets, entry occurs later. |
| Starting Page | 97 |
| Ending Page | 113 |
| Page Count | 17 |
| File Format | PDF HTM / HTML |
| DOI | 10.1111/j.1467-8292.2011.00432.x |
| Volume Number | 82 |
| Alternate Webpage(s) | http://orbi.ulg.ac.be/bitstream/2268/95559/1/2011_Gautier_Mizuno_APCE.pdf |
| Alternate Webpage(s) | https://doi.org/10.1111/j.1467-8292.2011.00432.x |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
