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.
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics|
Working Paper Series > Socioeconomic Institute (former)
|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|
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