Article Abstract:
A study reveals that the effect of price-cap (PC) regulation and modified price-cap (MPC) regulation on the allocative efficiency and diversification of core and non-core goods is largely affected by the nature of the core and non-core goods. Under PC regulation, a perfectly competitive non-core market is needed to achieve an efficient production of the core good. It can also be stated that under MPC regulation, a perfectly competitive non-core market results to core-market overproduction distortion. The study is particularly important in the regulation of the Baby Bells, which are entering the long-distance and cellular markets.
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Article Abstract:
A mathematical, proactive model has been developed in determining the desirable time for telecommunication firms to upgrade their network infrastructure. The proposed framework uses a static pricing policy to specify the the additional revenue a firm will be allowed after the infrastructure enhancements. Several parameters, including cost and demand considerations, must be carefully analyzed before an optimal timing is determined. Typically, network upgrading is beneficial if costs of initiating infrastructure development is low and demand for it is high.
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Article Abstract:
Issues concerning a study of the Indian telecommunications industry are discussed. The impact of deregulation and technological advances on efficiency and greater competition are examined.
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