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Type	Working Paper
Scope	Discipline-based scholarship
Title	On The Role of Access Charges Under Network Competition
Organization Unit	Microeconomics, Industrial Organization, and Environmental Economics (Armin Schmutzler)
Authors	Stefan Buehler Armin Schmutzler
Language	English
Institution	University of Zurich
Series Name	Working paper series / Socioeconomic Institute
Number	No. 501
Date	2005
Abstract Text	We aim to clarify the role of access charges under two-way network competition, employing a reduced-form approach. Retaining the key features of specific network competition models but imposing less structure, we analyze the impact of changes in access charges on linear and non-linear retail prices. We derive su.cient conditions for usage fees to be increasing (and subscriber charges to be decreasing) in access charges. These conditions are shown to be satisfied only under rather restrictive assumptions on the demand for calls, suggesting that implementing collusion by inflating access charges is likely to be nonfeasible.
Official URL	http://www.econ.uzh.ch/wp.html
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