Access Pricing, Competition, and Incentives to Migrate From "Old" to "New" Technology
MetadataShow full item record
CitationBourreau, Marc, Carlo Cambini, and Pinar Dogan. 2011. Access Pricing, Competition, and Incentives to Migrate From "Old" to "New" Technology. HKS Faculty Research Working Paper Series RWP11-029, John F. Kennedy School of Government, Harvard University.
AbstractIn this paper, we analyze the incentives of an incumbent and an entrant to migrate from an "old" technology to a "new" technology, and discuss how the terms of wholesale access affect this migration. We show that a higher access charge on the legacy network pushes the entrant firm to invest more, but has an ambiguous effect on the incumbent's investments, due to two conflicting effects: the wholesale revenue effect, and the business migration effect. If both the old and the new infrastructures are subject to ex-ante access regulation, we also find that the two access charges are positively correlated.
Citable link to this pagehttp://nrs.harvard.edu/urn-3:HUL.InstRepos:5098425
- HKS Faculty Scholarship 
Contact administrator regarding this item (to report mistakes or request changes)