Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-52167
Buehler, Stefan; Schmutzler, Armin; Benz, Men-Andri (2002). Infrastructure Quality in Deregulated Industries: Is there an Underinvestment Problem? Working paper series / Socioeconomic Institute No. 209, University of Zurich.
We investigate how various institutional settings affect a network provider’s incentives to invest in infrastructure quality. Under reasonable assumptions on demand, investment incentives turn out to be smaller under vertical separation than under vertical integration, though we also provide counter-examples. The introduction of downstream competition for the market can sometimes improve incentives. With suitable non-linear access prices investment incentives under separation become identical to those under integration.
286 downloads since deposited on 29 Nov 2011
98 downloads since 12 months
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
|Dewey Decimal Classification:||330 Economics|
|JEL Classification:||D42, L22, L43, L92|
|Deposited On:||29 Nov 2011 22:32|
|Last Modified:||09 Jul 2012 05:02|
|Series Name:||Working paper series / Socioeconomic Institute|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page