Economics - Research Publications

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Author: GANS, JOSHUA × Subject: interconnection ×

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    Using 'Bill and Keep' Internconnect Arrangements to Soften Network Competition
    Gans, Joshua S. ; King, Stephen P. ( 2000-03)
    This paper demonstrates that low (below marginal cost) interconnect or access charges can be used to sustain high subscription prices in an environment of network competition with two-part tariffs and price discrimination. This result stands in contrast to other results in the literature suggesting that high interconnect charges can play a collusive role.