Gradual Network Expansion and Universal Service Obligations
Gradual Network Expansion and Universal Service Obligations
Bibliographic Data
| ID | 12613510 |
|---|---|
| Authors | Axel Gautier (0000-0001-7700-3814, University of Liège, corresponding author), Keizo Mizuno (Kwansei Gakuin University) |
| Year | 2011 |
| Volume | 82 |
| Issue | 2 |
| Pages | 97-113 |
| Publication date | 2011-05-09 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Annals of Public and Cooperative Economics (JOURNAL) |
| Journal identifiers | ISSN: 1370-4788 • E-ISSN: 1467-8292 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1467-8292.2011.00432.x |
| OpenAlex | W2160741711 |
| Language | EN |
| References cited | 10 |
Universal service obligations are usually not competitively neutral as they modify the way firms compete in the market. In this paper, we consider a continuum of local markets in a dynamic setting with a stochastically growing demand. The incumbent must serve all markets (ubiquity) possibly at a uniform price and an entrant decides on its market coverage before firms compete in prices. Connecting a market involves a sunk cost. We show that the imposition of a uniform price constraint modifies the timing of entry: for low connection cost markets, entry occurs earlier while for high connection cost markets, entry occurs later
Business · Connection (principal bundle · Constraint (computer-aided design · Economics · Industrial organization · Microeconomics · Service (business · Sunk costs · Digital Platforms and Economics · Economic theories and models · ICT Impact and Policies · Marketing
| Citation velocity | historical |
|---|---|
| Highly cited | No |