Optimal access pricing with interconnection obligation

Abstract

In view of the recent regulatory trend that the incumbent is mandated to provide its own bottleneck facilities to entrants when requested, it is more reasonable to take an entrant than the incumbent as the one who plays a leader role, Given this regulatory framework, the present paper examines under what conditions the ECPR or marginal cost pricing is socially optimal. (C) 2001 Elsevier Science BY. All rights reserved.