We study the impact of reciprocal access charges on the incentives to invest in networks of higher quality. We show how private and social preferences always diverge once investments are endogenized. Private negotiations never lead to charges being set at their marginal cost. Whether or not marginal cost charges have good dynamic properties depends on the way investments in quality impact on traffic generated on the networks.
|Titolo:||Access Charge and Quality Choice in Competing Networks|
|Data di pubblicazione:||2004|
|Digital Object Identifier (DOI):||10.1016/j.infoecopol.2004.01.007|
|Appare nelle tipologie:||1.1 Articolo in rivista|