The ambivalence of two-part tariffs for bottleneck access

Detalhes bibliográficos
Autor(a) principal: Hoernig, Steffen
Data de Publicação: 2011
Outros Autores: Vogelsang, Ingo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/11162
Resumo: Two-part tariffs, when used at the retail level, increase efficiency by lowering the price of marginal units. The same potential for higher efficiency exists for two-part tariffs at wholesale level for a given market structure, but the fixed part of the wholesale tariff can negatively affect the latter. In a simulated competition model of next-generation telecommunications access networks that has been calibrated with engineering cost data, we show that the latter effects strongly outweigh the former. That is, substituting a cost-based linear wholesale access tariff with revenue-equivalent two-part tariffs reduces the number of access seekers and therefore leads to higher prices and lower welfare and consumer surplus.
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spelling The ambivalence of two-part tariffs for bottleneck accessTwo-part tariffs, when used at the retail level, increase efficiency by lowering the price of marginal units. The same potential for higher efficiency exists for two-part tariffs at wholesale level for a given market structure, but the fixed part of the wholesale tariff can negatively affect the latter. In a simulated competition model of next-generation telecommunications access networks that has been calibrated with engineering cost data, we show that the latter effects strongly outweigh the former. That is, substituting a cost-based linear wholesale access tariff with revenue-equivalent two-part tariffs reduces the number of access seekers and therefore leads to higher prices and lower welfare and consumer surplus.Nova SBERUNHoernig, SteffenVogelsang, Ingo2014-01-24T10:51:34Z2011-102011-10-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/11162enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T03:45:31Zoai:run.unl.pt:10362/11162Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:20:06.277670Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The ambivalence of two-part tariffs for bottleneck access
title The ambivalence of two-part tariffs for bottleneck access
spellingShingle The ambivalence of two-part tariffs for bottleneck access
Hoernig, Steffen
title_short The ambivalence of two-part tariffs for bottleneck access
title_full The ambivalence of two-part tariffs for bottleneck access
title_fullStr The ambivalence of two-part tariffs for bottleneck access
title_full_unstemmed The ambivalence of two-part tariffs for bottleneck access
title_sort The ambivalence of two-part tariffs for bottleneck access
author Hoernig, Steffen
author_facet Hoernig, Steffen
Vogelsang, Ingo
author_role author
author2 Vogelsang, Ingo
author2_role author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Hoernig, Steffen
Vogelsang, Ingo
description Two-part tariffs, when used at the retail level, increase efficiency by lowering the price of marginal units. The same potential for higher efficiency exists for two-part tariffs at wholesale level for a given market structure, but the fixed part of the wholesale tariff can negatively affect the latter. In a simulated competition model of next-generation telecommunications access networks that has been calibrated with engineering cost data, we show that the latter effects strongly outweigh the former. That is, substituting a cost-based linear wholesale access tariff with revenue-equivalent two-part tariffs reduces the number of access seekers and therefore leads to higher prices and lower welfare and consumer surplus.
publishDate 2011
dc.date.none.fl_str_mv 2011-10
2011-10-01T00:00:00Z
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