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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Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective


Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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