International Network Competition under National Regulation

Reprint No. 2016:31

Author(s): Thomas Tangerås and Joacim TågYear: 2016 Title: International Journal of Industrial Organization Volume (No.): 47 (July) Pages: 152–185
Online article (restrictions may apply)
Preliminary version

We extend the workhorse model of network competition to international calls. This model enables us to show that national regulatory authorities (NRAs) maximizing domestic welfare have incentives to increase termination rates above the social optimum to extract rent from international call termination. Excessive termination rates distort prices but transfer surplus from foreign to domestic consumers via intensified network competition. The model can explain the regulation of termination rates through rate floors. International network ownership and deregulation are alternatives to combat the incentives of NRAs to distort termination rates. We identify conditions under which each of these policies increases aggregate welfare.

Tangerås, Thomas and Joacim Tåg (2016), "International Network Competition under National Regulation". International Journal of Industrial Organization 47(July), 152–185.

Thomas Tangerås


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Joacim Tåg


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Global index of the sharing economy

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Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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