relation: https://mpra.ub.uni-muenchen.de/2518/
title: A Regulatory Framework for New and Emerging Markets
creator: Baake, Pio
creator: Kamecke, Ulrich
creator: Wey, Christian
subject: L90 - General
subject: L43 - Legal Monopolies and Regulation or Deregulation
subject: K23 - Regulated Industries and Administrative Law
subject: L96 - Telecommunications
description: The future of the information society crucially depends on investments in upgrading existing infrastructures and building new networks. Traditional cost-based regulation, which focuses on issues of static efficiency and service-based competition necessarily has negative effects on innovation incentives and the emergence of infrastructure-based competition in the highly dynamic telecommunications industry. This paper presents a regulatory framework for new infrastructures, which makes ex ante regulation contingent to the tendency towards effective competitive structures. Unlike the standard Significant Market Power-test (SMP), this approach takes a longer term perspective and therefore secures operators' investment incentives. The proposal has several desirable incentive effects. Firstly, it counters incentives to free-ride on investments by potential competitors, and secondly, it makes preemptive and other predatory practices by the investing firm less attractive. As a result, our proposal of contingent regulation in emerging markets promotes infrastructure-based competition in telecommunications.
date: 2005-12
type: MPRA Paper
type: NonPeerReviewed
format: application/pdf
language: en
identifier: https://mpra.ub.uni-muenchen.de/2518/1/MPRA_paper_2518.pdf
identifier:   Baake, Pio and Kamecke, Ulrich and Wey, Christian  (2005): A Regulatory Framework for New and Emerging Markets.  Published in: International Journal of Digital Economics  No. 60  (December 2005): pp. 123-146.  
language: en