Raising rivals' costs: the entry of an upstream monopolist into downstream markets

Article Abstract:

The motivations of a regulated upstream monopoly supplier of an input in the telecommunications industry where it wants to penetrate a downstream market to compete with its customers for the input were examined. The usual apprehension in this situation is that the upstream monopolist will be motivated to increase downstream competitors' costs even if the price of the input is regulated. However, there is a second consequence: increasing competitors' costs raises downstream profits, but increasing the downstream price reduces demand for the monopoly input, decreasing profit from the market.

Research, Economic aspects, Industry regulations, Monopolies, Government regulation of business, Trade regulation, Vertical integration, Monopolistic competition

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Regulation to promote competition: a first look at the FCC's implementation of the local competition provisions of the telecommunications act of 1996

Article Abstract:

Passage of the 1996 Telecommunications Act was primarily aimed at improving the quality of competition among local exchange carriers. However, proponents of the law encountered major difficulties in implementing an industrywide pricing policy as some incumbent local exchange carriers moved to limit the agency's regulatory measures. Survey results suggest that regulatory guidelines yield robust results than pure bargaining and that these guidelines are more efficiently carried out at the national level.

Interconnection (Telecommunications)

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Introduction

Article Abstract:

The Federal Communications Commission's regulatory orders and the provisions cited in the 1996 Telecommunications Act are some of the widely debated issues in the telecommunications industry. In an attempt to improve the quality of competition for interconnection services, researchers and experts have conducted various studies to evaluate the effects of the FCC's regulatory measures on local telecommunications. Others have tried to come up with their own pricing policy and marketing guidelines.

Evaluation, Telecommunication policy, Telecommunications policy

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