the incentives for upstream entry, Management Theories

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?

 

Posted Date: 3/19/2013 4:07:52 AM | Location : United States







Related Discussions:- the incentives for upstream entry, Assignment Help, Ask Question on the incentives for upstream entry, Get Answer, Expert's Help, the incentives for upstream entry Discussions

Write discussion on the incentives for upstream entry
Your posts are moderated
Related Questions
what are the advantages and disadvantages of forced choice

What are the general characteristics of protozoan?

Q. What is recruitment and planning? Goal oriented one, Dynamic, Process, Primary to other management Functions Recruitment is the process of inducing probable candidates ap

i want to know about about reward and benefits given to the employees of an organziation

Shared Activity: Your Transformational Story Think back to a time when you heard about a transformational story that truly inspired you. Perhaps it was about a successful CEO who

Five Forces Model A framework built by Michael Porter that captures the dynamics of the prevailing environmental forces in which an organization operates.  These factors i

Latin Squares Design: This design suggests that test will form a square because there will be as many test units as treatments. This design is used to control important extra


What is the role of outdoor advertising in increasing awareness and developing perception towards the organizations? Appropriate data             In order to solve this rese

http://www.expertsmind.com/question/?pi=it-management-3011965