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

Decisions making-benefit of hindsight , 1. Present a list of your 5 most im...

1. Present a list of your 5 most important decisions and why you view them as such. Give examples from the simulation periods 2. Are there any decisions that you made, that in

Planning and Measuring Performance, AReview the Example and Practice sectio...

AReview the Example and Practice sections of the Balanced Scorecard Module to practice reading and evaluating the information it presents. Complete the Assignment section of the Ba

Process Strategy and layout design of Costco, Write an assignment(2500 word...

Write an assignment(2500 words) about Costco which should include their process strategy, layout design, supply chain management and recommendations on their issues.

Organizational Behavior, For an organisation that you know well (e.g., the ...

For an organisation that you know well (e.g., the organisation, where you are currently employed or for which you worked in the past), using the relevant concepts, theories and mod

Describe the inventory control, Can you describe the Inventory Control ? Ex...

Can you describe the Inventory Control ? Explain various methods of Inventory Control.

Program of planned organisational, 1. Why is evaluation considered to be, a...

1. Why is evaluation considered to be, a necessary stage in a program of planned organisational, change/ Describe concisely some of the main techniques used to evaluate programs of

Effectiveness of piece rate system at quality assurance, what isthe scope o...

what isthe scope of piece rate system in quality assurance

MA Leadership, I am doing a MA in organizational behavior (leadership, inn...

I am doing a MA in organizational behavior (leadership, innovation and change)that requires four essays of 6000 words each and a final paper. I need a tutor to help me with the cri

Classification of personality types given by sheldon, Explain the classific...

Explain the classification of personality types given by Sheldon

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