Broadly speaking, the purpose of this research project is to analyze three issues. First, how does the mobile telecom market function, and what is the need for public intervention? Despite the many sources of market failure in telecommunications, the benefits of public intervention are uncertain. In fact, there are estimates that the 26 US states with price controls had prices that were 15 percent higher than the states without price controls, holding other economic factors equal. Second, how should one evaluate the effects of political intervention in the mobile telecom industry? Concerning the new European regulatory framework, such an evaluation is already scheduled to be started in about two years' time. Third, how should the national regulatory agencies carry out their duties, such as delineating markets, measuring market power, and metering out appropriate remedies, under the new regulatory framework?
Competition and Regulation in Electronic Communications
The purpose of this research project is to contribute to the understanding of the determinants of interconnection charges in electronic communications and the effect of competition and regulatory policies on market conduct.