Network Economics: Principles - Strategies - Competition Policy (Springer Texts in Business and Economics)

This textbook on network economics provides essential microeconomic instruments for the analysis of network sectors like telecommunications, transport or energy. Network-specific characteristics emerge both on the cost side and benefit side, requiring network providers to develop innovative entrepreneurial competition strategies for costing, pricing, and investment. From a competition policy perspective, a number of interesting questions arise: In which parts of networks is competition functional? In contrast, where is an abuse of market power to be expected? What is the division of labor between cartel authorities and regulatory agencies? The book develops an analytical framework for all network industries which allows readers to study entrepreneurial strategies as well as regulation and competition policies for network industries. Front Matter....Pages i-xiv Introduction to Network Economics....Pages 1-10 Decision-Relevant Costs....Pages 11-33 Congestion Externalities....Pages 35-72 Strategies for Price Differentiation....Pages 73-85 Auctions....Pages 87-99 Compatibility Standards in Networks....Pages 101-120 Universal Service....Pages 121-131 Market Power Regulation....Pages 133-156 The Positive Theory of Regulation....Pages 157-169 Back Matter....Pages 171-184