|
on Regulation |
| By: | Luisa Dressler |
| Abstract: | This dissertation seeks to contribute to the policy discussion on how to design efficient and sustainable energy policies. In three self-contained chapters, it applies microeconomic theory and empirical analysis to identify three market failures in European energy markets and to evaluate specific policy measures that strive to overcome these failures in order to increase market efficiency and to enhance environmental or societal sustainability. Chapter 1 and 2 study European electricity markets, which play an important role in the transition towards a carbon-neutral energy future. Overcoming barriers to efficient electricity markets is a crucial step to keep the costs of this transition as low as possible to society. Both chapters focus on obstacles to electricity market efficiency that have recently been highlighted by the European Commission. On the supply side, subsidies for renewable electricity may distort production incentives and competition in wholesale electricity markets. Chapter 1 applies a theoretical model to study the effect of different subsidies on producer strategies and competition in wholesale electricity markets. On the demand side, the European Commission seeks to overcome the reluctance of residential electricity consumers to switch electricity supplier in order to ensure effective competition in the retail electricity market. Chapter 2 empirically quantifies different reasons for switching inertia using a structural discrete choice model and performs counterfactual analysis to study the effect of different policy measures that seek to overcome switching inertia. Chapter 3 looks at the building sector, which accounts for 40% of final energy consumption in Europe and is a major emitter of carbon emissions. In the residential housing market information asymmetries hamper incentives to invest in energy efficiency improvements of rental property. This chapter empirically analyzes the effect of a European policy that mandates the use of energy performance certificates aiming at establishing an efficient market for energy efficient dwellings. |
| Keywords: | Energy Policy; Renewable Electricity; Feed-in Tariff; Feed-in Premium; Cournot Model; Electricity Contract Choice |
| Date: | 2017–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/256971&r=reg |
| By: | Valeria Di Cosmo (FEEM); Sean Collins (MaREI Centre, Environmental Research Institute, University College Cork); Paul Deane (MaREI Centre, Environmental Research Institute, University College Cork) |
| Abstract: | A longstanding goal of the European Union (EU) is to promote efficient trading between price zones via electricity interconnection to achieve a single electricity market between the EU countries. This paper uses a power system model (PLEXOS-EU) to simulate one vision of the 2030 EU electricity market based on European Commission studies to determine the effects of a new interconnector between France and the Single Electricity Market of Ireland and Northern Ireland (SEM). We use the same tool to understand the effects of investment in storage, and the effects of the interaction between storage and additional interconnection. Our results show that both investments in interconnection and storage reduce wholesale electricity prices in France and Ireland as well as reduce net revenues of thermal generators in most scenarios in both countries. However, France is only marginally affected by the new interconnector. Renewable generators see a modest increase in net revenues. The project has the potential for a positive impact on welfare in Ireland if costs are shared between countries and remain below 45 million €/year for the scenarios examined. The owners of the new interconnector between France and SEM see increased net revenues in the scenarios without storage. When storage is included in the system, the new interconnector becomes less profitable. |
| Keywords: | Interconnection, Renewable Generation, Storage |
| JEL: | Q4 Q48 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2017.37&r=reg |
| By: | Leurcharusmee, Supanika; Sirisrisakulchai, Jirakom; Suriya, Komsan; Keesookpun, Chutipong; Srinuan, Pratompong |
| Abstract: | Motivation, background and problem statement: Fixed and mobile broadband substitutability has recently been a debate in the telecom industry as the issue affects infrastructure investment decisions of service providers and service obligation regulation decision of telecom authorities. Previous studies have debated over both the definition of substitutability, measurement and the conclusions. Theoretically, substitution is the demand side concept measured using the cross-price elasticity. With a unique dataset, this study takes a simpler approach to examine the fixed-to-mobile substitution. Instead of examining the problem through the estimation of cross-price elasticity, this study estimates the impact of users’ mobile broadband subscription on their decision to terminate fixed broadband subscription. Data and methodology: The data used in this study are from the 2016 Telecom Consumption Survey of Thailand by the National Broadcasting and Telecommunications Commission of Thailand. This study estimates the fixed to mobile substitution using the concept of average treatment effect of mobile broadband usage on the fixed broadband termination. Without random assignment, the estimation of factors determining the fixed broadband termination decision, focusing on the mobile broadband subscription, faces the endogeneity problem. Therefore, we applied the endogenous switching Probit model to estimate the average treatment effect. Results and concluding remarks: From the survey, 1949 respondents subscribed to a fixed broadband service at home at one point. Among them, 85.48 percent remain subscribed to the service and 14.52 percent has canceled the service prior to 2016. The regression analysis shows that mobile broadband subscription has a positive significant effect on the decision to cancel fixed broadband service. The contribution of the study lies on the heterogeneity of the level of fixed to mobile substitution across different groups of internet users. For those who are online for less than 40 hours per day, mobile broadband is considered as a substitute for fixed broadband to a certain level. For those whose lifestyle requires a higher usage of internet, the results show no substitution. As telecom regulations normally target to help users with lower telecom accessibility rather than those with higher level of usage, the higher level of fixed and mobile substitution for individuals with low usage should imply the possibility to unify regulatory framework for fixed and mobile broadband markets. |
| Keywords: | Fixed to mobile substitution,fixed broadband termination,endogenous switching regression |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168513&r=reg |
| By: | Itziar Lazkano (Economics Department, University of Wisconsin-Milwaukee); Linda Nøstbakken (Department of Economics, Norwegian School of Economics); Martino Pelli (Economics Department, Université de Sherbrooke) |
| Abstract: | Electricity storage represents a solution to curb emissions by enabling more use of intermittent renewable energy. Our goal is to empirically analyze the determinants of innovation in electricity storage and its role in fostering technological innovations in renewable and conventional electricity generation. Using a global firm-level data set of electricity patents from 1963 to 2011, we find that better electricity storage promotes innovation not only in renewable energy but also in conventional technologies. Specifically, our estimates show that an additional storage patent increases the probability to apply for patents in renewable energy and efficiency-improving fossil fuel technologies two years from now by 1.11% and 0.66%, respectively. This implies that improved electricity storage technologies can boost the energy efficiency of conventional, fossil fuel-fired power plants as well as increase the use of renewable electricity. Thus, the ability of electricity storage to curb carbon emissions depends on: the competitiveness of renewable energy against conventional electricity generation, and conventional power generation mix as storage increases fossil-fuel efficiency and reduces ramping costs. |
| Keywords: | Electricity storage; Innovation; Electricity; Directed technical change. |
| JEL: | O3 O4 O5 Q2 Q3 Q4 Q5 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:17-06&r=reg |
| By: | Guillaume Bourgeois (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Sandrine Mathy (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Philippe Menanteau (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes) |
| Abstract: | The limitation of global warming below 2°C requires rapid and significant deployment of renewable energies in the power sector. Policies to support innovation and diffusion of renewables have been implemented for more than 20 years. There is currently a debate surrounding their economic and environmental efficiency and the right balance between support for innovation and support for diffusion. This article sheds light on the stakes of this debate by presenting the results of the econometric literature which evaluates the effect of these policies and compares these results with the main conclusions of non-econometric studies. The results show that innovation policies and diffusion policies have a positive impact on renewable energies and so confirm non-econometric studies. However, they reveal differentiated effects |
| Abstract: | La limitation du réchauffement climatique nécessite un déploiement rapide et important des énergies renouvelables (ENR). Des politiques de soutien visant l'innovation et la diffusion de ces technologies ont été mises en oeuvre depuis plus de 20 ans. Il existe aujourd'hui un débat sur leur efficacité environnementale et économique et sur le bon équilibre entre soutien à l'innovation et à la diffusion. Cet article éclaire les enjeux de ce débat en présentant les résultats de la littérature économétrique qui évalue l'effet de ces politiques et en comparant ces résultats avec les principaux enseignements des études non économétriques. Les résultats montrent que les politiques d'innovation et les politiques de diffusion ont un impact positif sur les ENR et confirment en cela les études non économétriques. Ils font toutefois apparaitre des effets différenciés selon la nature des politiques (politiques prix versus politiques quantités) et la maturité des technologies. |
| Keywords: | Public policies,renewable energy,innovation,diffusion,literature review,Politiques publiques, énergies renouvelables, innovation, diffusion, revue de la littérature, études économétriques |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01585906&r=reg |
| By: | Papai, Zoltan; Nagy, Peter; Papp, Bertalan |
| Abstract: | Cross-country price comparison is a useful, but often deceptive exercise. The paper addresses the underlying methodological challenges, offering a practicable solution, which is both sound enough and meaningful for the comparison of mobile broadband prices on different markets. Both the simple comparisons and the econometric analysis give valuable insights into how the structural characteristics and also other factors are associated with the price-differences between national mobile markets of the European Union. The result suggests that the presence of a challenger player on the market is important to have lower prices and wider choice of options on the market. This factor seems more important than the mere number of the players. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168533&r=reg |
| By: | Liu, Chen-Hao; Huang, Kuang-Chiu |
| Abstract: | With progress of communication technologies, it enables rapid development of all kinds of services over the Internet, and we call these services with a name as over the top (OTT). The penetration rate of 4G has increased rapidly and also increased mobile operator’s revenue. With the increase of digital convergence demand and other video platforms appear, it can be predicted the level of complex and competition will rise in whole market. The business expansion from scale of economies and the popularity of flat rates all have provided some convenience for people to surf and enjoy OTT services with no worry. However, the mobile Internet service providers (ISPs) have increase the number of market penetration rate quickly and have to deal with huge mobile traffic generated from OTT services. Video streaming accounts for 58 percentages in all mobile data traffic from a recent survey and it indicates that OTT videos streaming services convert mobile operators to be dumb pipes. If mobile operators have to maintain quality of service, they need to invest more money to upgrade their communication infrastructure. Although voice of IP (VoIP) services provided by Facebook, line and Skype do not consume huge amount of mobile bandwidth, it decreases mobile operator’s’ voice revenues and average revenue per user (APRU) significantly. Moreover, the revenue of SMS from mobile operators decline dramatically, too. Therefore, the paper addresses whether mobile operators are capable facing the impact of OTT videos and VOIP, to cope with emerging challenges from OTT services. In Taiwan, all mobile operators have developed their OTT platforms, and some mobile operators bundle their OTT services and mobile Internet service together to make more attractive for reducing churn rates and increase ARPU. In addition, cooperation with content providers and mobile operators are necessities and large scale of merger and acquisition (M&A) between AT&T and Time Warner to enrich their OTT capacities also emerged. This paper discusses different options of mobile operators to cope with OTT challenges. 1. Mobile operators choose to be dumb pipes and upgrade their infrastructures aggressively, and adopt strategic alliance with OTT service providers. 2. Mobile operators aggregate contents to develop OTT platforms by themselves to compete with other OTT services providers. In addition, the paper also how do asymmetric regulations between BISPs and OTT service operators affect the competition between mobile operators and OTT service providers. One is network neutrality and the other is data protection of personal privacy. Network neutrality has been discussed and debated for many years with different kinds of interpretation, but restrictions of selling personal data for mobile operators can produce more notable effect. OTT service provides can sell customer data to make profits whether mobile operators can sell customer data with precise location data. In order to study the competition between mobile operators and OTT service providers clearly, we propose, basing on mobile operator’s perspective, six options from pure wholesale dumb pipe to fully bundle service provider. 1. Wholesale only. It means mobile operators won’t contact consumers directly, and provides their spectrum and infrastructure to mobile virtual network operators(MVNO). 2. Retail only. It means mobile operators focus on their mobile business (e.g. voice business and mobile data business) and don’t get involving in developing their OTT services. 3. Wholesale and retail together. But mobile operators do provide OTT services. 4. Wholesale, retail and strategic alliance with OTT service providers. Mobile operator do develop their own OTT services but take strategic alliance with other OTT service providers and bundle those services together. 5. Wholesale, retail, and develop their owned OTT platforms. Mobile operators can produce contents by themselves or purchase copyright from channel operators and other content providers. 6. The last option is to combine all of above five options. This study adopts cost-benefit analysis to compare total cost and benefit and assess profitability of each option, because cost-benefit analysis can provide quantitative number to aid for analyzing each option and obtaining a clear picture for input and output. The research outcome not only can depict the competition between mobile operators and OTT service providers clearly but also offers a valuable reference for NRAs, mobile operators and OTT service providers about how to regulate and how to compete with difference scenarios and options. |
| Keywords: | OTT,mobile operators,competition,asymmetric regulations,business strategy,options |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168492&r=reg |
| By: | Lee, Sangwon; Lee, Seonmi; Brown, Justin |
| Abstract: | Global markets for OTT (Over-the-Top) services are growing. Focusing on OTT services in Korean media markets, this study explores technological, industrial, and policy factors in OTT markets. Specifically, platform competition and regulatory classification for market entry regulation, global OTT players’ negative impacts on national economy, reverse discrimination against domestic players and user protection issues are discussed. Based upon the discussion on competition and policy issues for OTT players, this study suggests future policy directions for Korean media markets. |
| Keywords: | Global Over-the-Top,Regulatory Policy,Korea,Platform Competition |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168510&r=reg |
| By: | Fuke, Hidenori |
| Abstract: | This study tries to evaluate problems surrounding the transition from public switched telephone networks (PSTNs) to IP networks that affect both the current users of PSTN and competitive carriers. For this purpose, this study surveys discussions on the transition based on four perspectives: (1) consumer-oriented, (2) forward-looking, (3) competitive neutrality and (4) proportionality of regulation. It is organised in the following manner. First, it clarifies the background of the transition, especially the impact of the diffusion of broadband Internet and mobile technologies. Second, it surveys a series of the Nippon Telegraph and Telephone Corporation’s (NTT) migration proposals published since 2010. Third, the Ministry of Internal Affairs and Communications’ (MIC) investigation responding to NTT’s proposals is summarised. Fourth, problems regarding the transition are evaluated by contrasting NTT’s proposals and MIC’s reports. Finally, the study infers five important remarks based on the above analysis. It must be acknowledged that the evaluations and remarks are premature because discussions on the transition are still in progress and the details of the transition have not yet been officially published. |
| Keywords: | PSTN,IP,Migration,Consumer Oriented,Proportionality of Regulation,Competitive Neutrality |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168482&r=reg |
| By: | Grzybowski, Lukasz; Liang, Julienne; Zulehner, Christine |
| Abstract: | This paper answers two empirical questions. First, we analyze how fixed-mobile (quadruple-play) bundling impacts retention of consumers in fixed broadband market. Second, we assess how bundling by the incumbent operator impacts the market share and number of entrants who provide broadband services using incumbent's infrastructure. To address these questions we use a complete database of about 9.5 million subscribers to incumbent fixed broadband operator in a European country between March 2014 and February 2015. This data is combined with information on the market share and number of entrants in about 36,000 municipalities in this country. We find that consumers who bundle fixed and mobile services from the same provider are less likely to churn. Without quadruple-play bundling the annual retention of fixed broadband consumers would increase from 8.4% to 9.2%. Next, we find that the share of consumers having quadruple-play bundles with the incumbent has a negative impact on the market share and number of entrants. In the absence of quadruple- play bundling, the market share of entrants would be higher by about 6.8 percentage points. Quadruple-play bundling has also negative impact on the number of LLU entrants, which is bigger in the case of small LLU operators who cannot provide bundled offers themselves. This suggests that firms which cannot sell fixed-mobile bundles are disadvantaged in competition. |
| Keywords: | Quadruple-play,Bundling,Consumer retention,Market entry |
| JEL: | L13 L50 L96 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168483&r=reg |
| By: | Kuroda, Toshifumi; Koguchi, Teppei; Ida, Takanori |
| Abstract: | Modern economic theory predicts that tying can serve as a tool for leveraging market power. In line with this economic theory, competition authorities regulate the tying of Microsoft Windows with its Media Player or Internet browser in the EU and Japan. The authorities also take note of the market power of mobile handset operating systems (OSs) over competition in the app and services markets. However, no empirical evidence has thus far been presented on the success of government intervention in the Microsoft case. To assess the effectiveness of government intervention on mobile handset OSs, we identify the extent to which complementarity and consumer preferences affect the correlation between mobile handset OSs and mobile service app markets (mail, search, and map). We find significant positive complementarity between the mail, search, and map services, and mobile handset OSs. However, the elasticities of the mobile handset OS–mobile service correlations are rather small. We conclude that taking action to restrict mobile handset OSs is less effective than acting on mobile services market directly. |
| Keywords: | Mobile phone,Handset,Internet service,Platform competition |
| JEL: | L12 L43 L96 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168506&r=reg |
| By: | Hasbi, Maude |
| Abstract: | I estimate the impact of very high-speed broadband networks on some measures of local economic growth in France. I use panel data estimations with time- and municipal-fixed effects. I show that municipalities with a very high-speed broadband network tend to be more attractive for companies. I find a positive impact on the number of companies of all non-farm market sectors operating locally, along with a positive impact on company creation. In addition, municipalities with a very high-speed broadband network provide a more favorable environment for entrepreneurship, as it has a positive effect on the creation of sole proprietorships. The estimation results also show a positive impact on unemployment reduction. |
| Keywords: | Fiber,Very High-Speed Broadband,Local Economic Growth,Company Creation |
| JEL: | L13 L50 L96 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168484&r=reg |
| By: | Howell, Bronwyn E; Potgieter, Petrus H. |
| Abstract: | Existing frameworks (such as used by the New Zealand Commerce Commission in its recent evaluation of the proposed merger between Sky Television and Vodafone) require, as a first step, the definition of the relevant markets affected by the merger or vertical integration activity. Historic precedents in the telecommunications sector have tended towards finding that vertical agglomeration effects when network operators integrate downstream into the provision of applications and services to end-consumers are harmful to competition. Such Structure-Conduct-Performance methods of evaluating mergers and other aspects of market performance are problematic when the firm(s) concerned supply many different products, both together in various different bundle forms and separately as individual components. Defining the markets for (merger) analysis on the basis of only one of the components in a possible bundle that the (merged) firm may supply risks overlooking the complex interactions that occur on the demand side when consumers make their purchase decisions. This is especially likely to be an issue in the supply of internet applications and content bundled with broadband internet access. Consumers have heterogeneous preferences for different applications and content (hereafter ‘content’), and will purchase (or access) many different content types. Even though ownership of rights to distribute one content may confer a degree of market power in for the owner-provider over those consumers with very strong preferences for this content over all others, it is not axiomatic that the firm will be able to exert this power over consumers whose preferences are more evenly distributed. The more variety there is in the content bundles available, and the more heterogeneous are consumers’ preferences across the various content types, the greater is the number of possible markets in which interaction is likely to occur and the more problematic it becomes to identify the relevant markets for analysis of mergers and antitrust cases. We propose that classic merger and antitrust analysis based on econometric cost-benefit analysis can be augmented by using simulation and numerical analysis of a range of bundle offers expected to be relevant in decision-making. We develop a simple model and use it to demonstrate how this approach could have informed the recent New Zealand Commerce Commission decision about the proposed Sky-Vodafone merger by offering some quantitative estimates of total and consumer welfare and provider profits under the proposed factual (with bundling) and counterfactual (individual component sales) cases. The approach may also inform other analyses, such as the assessment of the effects of two-sided markets and firm pricing decisions. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168487&r=reg |
| By: | Koeder, Marco; Tanaka, Ema; Sugai, Philip |
| Abstract: | This paper offers a look at the Japanese mobile free to play market with a focus on “Gacha”, a game of luck mechanism used in many Japanese games. The paper tries to explain about the concept of Gacha, its different forms, some known regulation issues and briefly looks at player and professional’s insights and discusses an analytical framework for further studies to figure out the reason of player’s acceptance of price discrimination in F2P mobile games. |
| Keywords: | Free-to-play,freemium,mobile games,lottery,behavior,attitudes,virtual goods,Japan |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168503&r=reg |
| By: | Magali Pierre (GRETS - Groupe de Recherche Energie, Technologie et Société - EDF R&D); Eleonora Morganti (LVMT - Laboratoire Ville, Mobilité, Transport - UPEM - Université Paris-Est Marne-la-Vallée - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Paris-Est - École des Ponts ParisTech (ENPC)); Virginie Boutueil (LVMT - Laboratoire Ville, Mobilité, Transport - UPEM - Université Paris-Est Marne-la-Vallée - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Paris-Est - École des Ponts ParisTech (ENPC)) |
| Abstract: | Over the last few years, obligations to reduce carbon dioxide emissions have led European States to propose ambitious targets concerning electrifying car fleets. In France for instance, electric vehicles are required to cover a quarter of all new car purchases in big companies and public administrations. In these organizations, departments that are traditionally in charge of company vehicles have thus been tasked to implement these policy decisions. General Resources have become de facto responsible for testing and managing these new EVs. Illustrating our results through five case-studies that took place in France in 2012-2015, we will show how these departments, and notably fleet managers, carry out the numerous tasks accompanying the spreading of EVs in their organizations: acquiring these vehicles (and the charging infrastructure), allocating them and managing the charging of the cars. The allocation, whether as fleet cars or executive ones, is an important step for the success of their implementation in these companies. We will also point out the contradictory significations and powerful constraints that complicate the performance of these tasks. Their achievement strengthens the role of the fleet managers, who turn out to be crucial but unexpected players in electricity demand. |
| Keywords: | Fleet management, electric vehicles, corporate fleets |
| Date: | 2016–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01415461&r=reg |
| By: | Marsden, Richard; Ihle, Hans-Martin; Traber, Peter |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168518&r=reg |
| By: | Guy Meunier (INRA); Ingmar Schumacher (IPAG Business School) |
| Abstract: | Social pressure can help overcome the free rider problem associated with public good provision. In the social norms literature concerned with the private provision of public goods there seems to be an implicit belief that it is best to have all agents adhere to the `good' social norm. We challenge this view and study optimal government policy in a reference model (Rege, 2004) of public good provision and social approval in a dynamic setting. We discuss the problem with the standard crowding in and out argument and analyze the relationship with Pigouvian taxes. We show that even if complete adherence to the social norm maximizes social welfare it is by no means necessarily optimal to push society towards it. We stress the different roles of the social externality and the public good problem. We discuss the role of the cost of public funds and show how it can create path dependency, multiplicity of optimal equilibria and optimal paths, and discuss the role of parameter instability. We argue that extreme care must be taken when formulating policies and subsequent results will fully depend on this formulation. |
| Keywords: | government policy, optimal policy, public goods, social norms, |
| JEL: | H23 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2017.17&r=reg |
| By: | Neumann, Karl-Heinz; Plückebaum, Thomas |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168523&r=reg |
| By: | Manzano, Carolina; Vives, Xavier |
| Abstract: | We analyze a divisible good uniform-price auction that features two groups each with a Önite number of identical bidders. At equilibrium the relative market power (price impact) of a group increases with the precision of its private information and declines with its transaction costs. An increase in transaction costs and/or a decrease in the precision of a bidding groupís information induces a strategic response from the other group, which thereafter attenuates its response to both private information and prices. A "stronger" bidding group -which has more precise private information, faces lower transaction costs, and is more oligopsonistic- has more price impact and so will behave competitively only if it receives a higher per capita subsidy rate. When the strong group values the asset no less than the weak group, the expected deadweight loss increases with the quantity auctioned and also with the degree of payo§ asymmetries. Price impact and the deadweight loss may be negatively associated. The results are consistent with the available empirical evidence. KEYWORDS: demand/supply schedule competition, private information, liquidity auctions, Treasury auctions, electricity auctions, market integration. JEL: D44, D82, G14, E58 |
| Keywords: | Teoria de la informació (Economia), Mercat -- Anàlisi, Bancs centrals, Subhastes, 33 - Economia, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/292436&r=reg |
| By: | Frieden, Rob |
| Abstract: | This article offers an unsponsored examination of current disputes whether national regulatory authorities (“NRAs”) should permit broadband carriers and content providers, such as Facebook, to subsidize broadband access to a limited, “walled garden” of content. The subsidy makes it possible for sponsored data access without debiting a monthly data allowance. Wireless subscribers, with service caps typically set at 1-5 Gigabytes allowed per month, can quickly exhaust their monthly allotment when streaming video content. Even so-called unlimited data plans in developed countries have monthly data thresholds that, if reached, trigger slower content delivery speeds and possibly degraded screen resolution of delivered video content. The article concludes that even though carriers and content providers serve profit maximizing goals in zero rating arrangements, the practice can have positive spillover effects including more access by impoverished users, stimulated interest in diversifying uses of wireless handsets and possible migration to broadband access options that equally support content consumption and creation. While carriers and content providers can migrate tentative, subsidized users into paying ones, zero rating also provides first time access opportunities, particularly for individuals least able to afford even extremely low cost access options available in many lesser developed countries. Additionally, zero rating can stimulate interest by consumers financially able to afford unsubsidized access, but heretofore uninterested in, or uninformed about the benefits. The article identifies ways for carriers and NRAs to limit subsidies in ways that accrue social benefits without creating an unlimited “free rider” opportunity for all wireless subscribers, regardless of ability to pay for service. The article suggests that carriers should offer zero rating opportunities on a conditional and promotional basis thereby making it more difficult for existing subscribers simply to use zero rating access as a way to avoid paying surcharges for exceeding data caps. While NRAs should not micro-manage carriers’ service pricing, establishing qualification rules for access to zero rating fits with other universal service initiatives that rely on well calibrated and targeted subsidies to simulate broadband service demand and supply. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168481&r=reg |