the incentives for upstream entry, Management Theories

Assignment Help:

Suppose that the numbers in the table below shows the cost structure of a vertically integrated telecom incumbent, which is subject to price regulation at the consumer level, as well as the industry demand. Suppose that retail services produced by potential entrants are perfect substitutes for the incumbent's retail services (i.e., a displacement ratio of 1) and that the (numerous) entrants have no market power.

 

Urban

Rural

# of subscr.

20

10

M's cost/subscr.

50

200

- of which retail

20

20

- of which net

30

180

M's price/subscr

100

100

 

a)      Suppose cost-based access regulation. Which access price or prices will give the appropriate incentives for downstream entry? Describe!

b)      How will your proposed answer in a) affect the incentives for upstream entry? Describe!

c)       Suppose instead Efficient Component Pricing (ECP) regulation (maintaining all the over assumptions, except for the cost-based access regulation). What access prices will this regulatory regime result in? How will the incentives change for the incumbent and the potential entrants in the upstream and downstream segments?

 


Related Discussions:- the incentives for upstream entry

Strategy under the maxi-min decision criterion , In problem one, the best s...

In problem one, the best strategy under the maxi-min decision criterion is a.  Homes , $65,000.00 b.  Homes , $86,000.00 c.  Apartments , $72,000.00 d.  Condos , $23,0

Delegation the management tool, Delegation is one of the management tools w...

Delegation is one of the management tools where the person uses his leadership styles carefully and properly, by this position a person gets the authority to handle the task or his

An analytical note on neo -classical and modern theo, #question.An analytic...

#question.An analytical note on neo -classical and modern theories of organization in principles of management.

Health questions, 1.Eating slate pencils makes our body anemic.slate pencil...

1.Eating slate pencils makes our body anemic.slate pencils contains calcium carbonate.How calcium carbonate makes our body anemic?How it is possible?please tell me doctor how the c

What do you mean by a strategy, Q. What do you mean by a strategy? Stra...

Q. What do you mean by a strategy? Strategy is classified as the determination of long-term objectives of an organization. Making the best choices for the future as well as all

Modes of nutrition., The types and expain,give exampes each and expain them...

The types and expain,give exampes each and expain them.

HRM, Should benching be a matter of concern a Delta?

Should benching be a matter of concern a Delta?

Decission making, essay in managemnet decission making (heuristics). Need h...

essay in managemnet decission making (heuristics). Need help from someone to do the assignment for me

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd