1,721,124 research outputs found
Access Charge and Quality Choice in Competing Networks
No full textWe study the impact of reciprocal access charges on the incentives to invest in networks of higher quality. We show how private and social preferences always diverge once investments are endogenized. Private negotiations never lead to charges being set at their marginal cost. Whether or not marginal cost charges have good dynamic properties depends on the way investments in quality impact on traffic generated on the networks
Information Exchange and Competition in Communications Networks
No full textCEPR working paper n. 503
Selling customer information to competing firms
Full text linkWe consider a data broker that holds precise information about
customer preferences. The data broker can sell this data set either
exclusively to one of two differentiated competing firms, or to both
of them. If a downstream firm obtains the data set, it can practice
personalized pricing, else it has to offer a uniform price to customers.
The first-best allocation can be achieved when data are sold non exclusively,
but this never arises in equilibrium. The data broker instead
sells the data set exclusively either to the high quality firm or to the
low quality firm rival, according to their quality-adjusted cost differential.
This leads to inefficient allocations
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