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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.

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Abstract

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.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
DDC:330 Economics
JEL Classification:D42, L22, L43, L92
Language:English
Date:August 2002
Deposited On:29 Nov 2011 22:32
Last Modified:09 Jul 2012 05:02
Series Name:Working paper series / Socioeconomic Institute
Official URL:http://www.econ.uzh.ch/wp.html

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