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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26251
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| Title: | The Inefficiency of the ECPR Yet Again: A Reply to Larson |
| Authors: | Economides, Nicholas
White, Lawrence J. |
| Issue Date: | Feb-1996 |
| Series/Report no.: | EC-96-07 |
| Abstract: | We extend the results of our article, "Access and Interconnection
Pricing? How Efficient Is the "Efficient Component Pricing
Rule?," Antitrust Bulletin (1995). In the presence of a monopolized
essential input, we show that application of the Efficient Component
Pricing Rule ("ECPR") in pricing this input to downstream
competitors perpetuates monopoly distortions and high prices of final
goods services. We show these results for various demand conditions,
including conditions that are accepted to hold in the telecommunications
sector. We also respond to various criticisms raised by A. Larson in
"The Efficiency of the Efficient-Component-Pricing Rule: A
Comment," Antitrust Bulletin, (this issue) (1998). |
| URI: | http://hdl.handle.net/2451/26251 |
| Appears in Collections: | Economics Working Papers
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