My Fibre or Your Fibre? Cooperative Investment, Uncertainty and Access

38 Pages Posted: 13 Jan 2013

See all articles by Marc Bourreau

Marc Bourreau

Telecom ParisTech

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Steffen Hoernig

Nova School of Business and Economics

Date Written: January 11, 2013

Abstract

We investigate cooperative investment in a new infrastructure and how it interacts with access obligations and demand uncertainty. Co-investment only increases total coverage if service differentiation and/or cost savings from joint investment, in particular due to high uncertainty, are high. Mandated access reduces incentives for co-investment not only through lower returns but also by creating the option to ask for access instead. Voluntary access provision increases infrastructure coverage but reduces social welfare by softening competition.

Keywords: Networks, Co-investment, Uncertainty, Access Obligations

JEL Classification: D21, D43, G31, L5, L92

Suggested Citation

Bourreau, Marc and Cambini, Carlo and Hoernig, Steffen, My Fibre or Your Fibre? Cooperative Investment, Uncertainty and Access (January 11, 2013). Available at SSRN: https://ssrn.com/abstract=2199831 or http://dx.doi.org/10.2139/ssrn.2199831

Marc Bourreau (Contact Author)

Telecom ParisTech ( email )

46, rue Barrault
Paris Cedex 13, F-75634
France

Carlo Cambini

Politecnico di Torino & EUI - Florence School of Regulation ( email )

Corso Duca degli Abruzzi, 24
Torino, Torino 10129
Italy
+390115647292 (Phone)
+390115647299 (Fax)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Steffen Hoernig

Nova School of Business and Economics ( email )

Campus De Carcavelos
Rua Da Holanda 1
Carcavelos, 2775-405
Portugal
+351-213801600 (Phone)

HOME PAGE: http://https://www2.novasbe.unl.pt/en/faculty-research/faculty/faculty-detail/id/46/steffen-hoernig

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
228
Abstract Views
1,239
Rank
243,361
PlumX Metrics