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A modern approach to network economics providing an analytical framework for all relevant network industries
Relevant entrepreneurial strategies for costing and pricing in network industries
Well-founded concepts for regulation and competition policy in network industries
This textbook on network economics provides essential microeconomic instruments for the analysis of network sectors like telecommunications, transport or energy. Network-specific characteristics emerge both on the cost side and benefit side, requiring network providers to develop innovative entrepreneurial competition strategies for costing, pricing, and investment. From a competition policy perspective, a number of interesting questions arise: In which parts of networks is competition functional? In contrast, where is an abuse of market power to be expected? What is the division of labor between cartel authorities and regulatory agencies? The book develops an analytical framework for all network industries which allows readers to study entrepreneurial strategies as well as regulation and competition policies for network industries.
Content Level »Upper undergraduate
Keywords »Compatibility standards - Competition policy and regulation - Costing and pricing - Network industries - Universal services
Introduction to Network Economics.- Decision-Relevant Costs.- Congestion Externalities.- Strategies for Price Differentiation.- Auctions.- Compatibility Standards in Networks.- Universal Service.- Market Power Regulation.- The Positive Theory of Regulation.