Interconnection policy: a theoretical survey

This article surveys the theoretical foundations of interconnection policy. The requirement of an interconnection policy should not be taken for granted in all circumstances, even considering the issue of network externalities. On the other hand, when it is required, an encompassing interconnection...

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Bibliographic Details
Main Author: César Mattos
Format: Article
Language:English
Published: Universidade Federal de Minas Gerais 2003-01-01
Series:Nova Economia
Subjects:
Online Access:http://www.face.ufmg.br/novaeconomia/sumarios/v13n1/Mattos.pdf
Description
Summary:This article surveys the theoretical foundations of interconnection policy. The requirement of an interconnection policy should not be taken for granted in all circumstances, even considering the issue of network externalities. On the other hand, when it is required, an encompassing interconnection policy is usually justified. We provide an overview of the theory on interconnection pricing that results in several different prescriptions depending on which problem the regulator aims to address. We also present a survey on the literature on two-way interconnection.
ISSN:0103-6351