Working Paper No. 1005

International Network Competition

Published: February 12, 2014Pages: 38Keywords: Cross-border ownership; Decentralized regulation; International markets; NetworkJEL-codes: L51; L96
Published version

International Network Competition Thomas Tangerås and Joacim Tåg


We analyse network competition in a market with international calls. National regulatory agencies (NRAs) have incentives to set regulated termination rates above marginal cost to extract rent from international call termination. International network ownership and deregulation are alternatives to combat the incentives of NRAs to distort termination rates. We provide conditions under which each of these policies increase efficiency and aggregate welfare. Our findings provide theoretical support for recent policy initiatives by the European Commission.

 

 

 

 

Thomas Tangerås

Contact

Ph: +46 8 665 4526
Mob: +46 70 727 5448
thomas.tangeras@ifn.se

Joacim Tåg

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Ph: +46 8 665 4524
joacim.tag@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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