How regulation affects network and service quality in related markets

Justus Haucap and Gordon Klein

Economics Letters, 2012, vol. 117, issue 2, 521-524

Abstract: We analyze how network regulation affects investment into network infrastructure and complementary services. While regulation negatively affects investment incentives in the regulated network market, the effects of network regulation on investment in complementary services can be either negative or positive, depending on the relative weight consumers assign to infrastructure versus service quality. We also find constellations where regulation can enhance perceived total quality.

Keywords: Network regulation; Network quality; Service quality; Complementary services (search for similar items in EconPapers)
JEL-codes: D43 L13 L51 L96 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:2:p:521-524

DOI: 10.1016/j.econlet.2012.07.004

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