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Theoretical models based on the assumption that telecommunications is a natural monopoly no longer reflect reality. As a result, policymakers often lack the guidance of economic theorists. Competition in Telecommunications is written in a style accessible to managers, consultants, government officials, and others. Jean-Jacques Laffont and Jean Tirole analyze regulatory reform and the emergence of competition in network industries using the state-of-the-art theoretical tools of industrial organization, political economy, and the economics of incentives.The book opens with background information for the reader who is unfamiliar with current issues in the telecommunications industry. The following sections focus on four central aspects of the recent deregulatory movement: the introduction of incentive regulation; one-way access (access given by a local network to the providers of complementary segments, such as long-distance or information services); the special nature of competition in an industry requiring two-way access (whereby competing networks depend on the mutual termination of calls); and universal service, in particular the two leading contenders for the competitively neutral provision of universal service: the use of engineering models to compute subsidies and the design of universal service auctions. The book concludes with a discussion of the Internet and regulatory institutions.Copublished with the Center for Economic Studies and the Ifo Institute
- Sales Rank: #1035753 in Books
- Published on: 2001-03-01
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x .90" w x 6.00" l, 1.07 pounds
- Binding: Paperback
- 336 pages
Review
This book does an outstanding job of explaining how economic theory can help improve regulation of telecommunications. The authors capture the interaction of competition and regulation in a very sophisticated manner. I recommend the book to economics students, regulators, and other business people and government officials with an interest in telecommunications.
(Jerry A. Hausman, MacDonald Professor of Economics, MIT)This book is as systematic, probing, and original an exploration of the important regulatory issues as one can hope for. The authors demonstrate the great analytic competence for which they are deservedly noted.
(William J. Baumol, Director, C.V. Starr Center for Applied Econoimcs, New York University)This book is masterful application of the best of economic theory to central issues in telecommunications policy. Throughout, Laffont and Tirole capture the essence of complex issues succinctly and elegantly, without compromising rigor or accessibility. Anyone interested in telecommunications, or in the transition from regulated monopoly to competition more generally, will benefit tremendously from this book.
(Marius Schwartz, Professor of Economics, Georgetown University)Laffont and Tirole show that the tools of economic analysis, when applied with exceptional skill and concern for the facts, can illuminate the difficult policy problems that crop up along the road to competition in telecommunications. This book will quickly become a standard reference.
(Richard Schmalensee, Dean, MIt Sloan School of Management)"Laffont and Tirole have combined their mastery of economic theorywith real-world telecom know-how to produce a gem of a book. If youwant to deepen your understanding of telecom—and of networkindustries generally-you must read this book." Carl Shapiro, Transamerica Professor of Business Strategy, University of California, Berkeley, and author of InformationRules: A Strategic Guide to the Network Economy
About the Author
Jean-Jacques Laffont was Professor of Economics at theUniversité des Sciences Sociales de Toulouse and the InstitutUniversitaire de France and Director of the Institut d'EconomieIndustrielle.
Jean Tirole is Scientific Director of IDEI (Institut d'Economie Industrielle), Chairman of the Board of TSE (Toulouse School of Economics), and Annual Visiting Professor of Economics at MIT.
Most helpful customer reviews
8 of 10 people found the following review helpful.
Network Competition in Practice
By Eduardo H. Saavedra
Professor Laffont's book illustrates the last ten years theoretical developments that explain how feasible is to encourage competition in local telephony.
As usual, theoretical developments follows technological advances that allow profitable entry in a typical natural monopoly market. Moreover, this book highlights the importance for policy makers in helping entry in this market by eliminating legal entry barriers, or in some cases subsiding new becomers.
Although this book is more oriented to policy makers than academics, I would like to have seeing more formal treatment for some of the many topics cover by professor Laffont. Nevertheless, this book represents an excellent summary of network competition literature.
1 of 1 people found the following review helpful.
Review of Competition in Telecommunications
By J. J. Balchin
Probably the best summary of the economics of access regulation in the easly chapters that you'll find anywhere (particularly after the sad passing of Jean-Jacques) and a very accessible coverage of the application of those principles to the specific case of telecommunications.
0 of 1 people found the following review helpful.
Exactly the same as the one in campus bookstore
By Barbara
Very satisfied with the quality of the product. The book is cheaper than the one sold in campus bookstore. I received it in brand new condition.
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