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

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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

Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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