|
on Regulation |
| By: | Joan Calzada (Faculty of Economics, University of Barcelona); Fernando Martínez (Competition Commission and Faculty of Economics, University of Barcelona) |
| Abstract: | This paper analyses the determinants of broadband Internet access prices in a group of 15 EU countries between 2008 and 2011. Using a rich panel dataset of broadband plans, we show the positive effect of downstream speed on prices, and report that cable and fibre-to-the-home technologies are available at lower prices per Mbps than xDSL technology. Operators’ marketing strategies are also analysed as we show how much prices rise when the broadband service is offered in a bundle with voice telephony and/or television, and how much they fall when download volume caps are included. The most insightful results of this study are provided by a group of metrics that represent the situation of competition and entry patterns in the broadband market. We show that consumer segmentation positively affects prices. On the other hand, broadband prices are higher in countries where entrants make greater use of bitstream access and lower when they use more intensively direct access (local loop unbundling). However, we do not find a significant effect of inter-platform competition on prices. |
| Keywords: | Telecommunications, Broadband prices, European Union, Competition, Regulation. JEL classification: L51, L86, L96. |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201309&r=reg |
| By: | Guillaume Monchambert (ENS Cachan - Ecole Normale Supérieure de Cachan - École normale supérieure de Cachan - ENS Cachan); André De Palma (ENS Cachan - Ecole Normale Supérieure de Cachan - École normale supérieure de Cachan - ENS Cachan) |
| Abstract: | This paper addresses the two-way implication between punctuality level of public transport and commuter behavior. We consider a modal competition between public transport and an alternative mode. Commuters may choose different strategies to minimize their journey cost. In particular, when the bus becomes less punctual, more potential bus users arrive late at the bus stop. We show that punctuality increases with the alternative mode fare through a price effect. This specificity can be viewed as an extension of the Mohring effect. In the general case, the punctuality of a bus is lower at equilibrium than at optimum. According to the alternative mode operating cost, the bus attracts too many (small cost) or too few (large cost) customers. |
| Keywords: | public transport; reliability; duopoly; welfare; Mohring e ect; schedule delay |
| Date: | 2013–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00827972&r=reg |
| By: | Zhu Wang |
| Abstract: | This paper studies unintended consequences of price cap regulation in the presence of demand externalities in the context of payment cards. The recent U.S. debit card regulation was intended to lower merchant card acceptance costs by capping the maximum interchange fee. However, small-ticket merchants found their fees instead higher after the regulation. To address this puzzle, I construct a two-sided market model and show that card demand externalities across merchant sectors rationalize card networks’ pricing response. Based on the model, I study socially optimal card fees and an alternative cap regulation that may avoid the unintended consequence on small-ticket merchants. |
| Keywords: | Financial markets ; Payment systems ; Law and legislation |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:13-06&r=reg |
| By: | Clifton, Judith; Díaz-Fuentes, Daniel; Fernández-Gutiérrez, Marcos |
| Abstract: | Augmenting consumer welfare was a key justification behind the reform of utilities from the 1980s. But, three decades later, evidence is mounting that consumer satisfaction with household utilities is quite uneven. Moreover, governments, regulators and international organizations are increasingly recognizing that consumers from specific socio-economic backgrounds may be less satisfied than those from other backgrounds. To attend to this, instances of demand-side regulation have been implemented, but there remains a lack of empirical research on the precise links between consumers’ socio-economic background and their satisfaction. This article contrasts consumers’ stated and revealed preferences for three major household utility services (electricity, gas and telecommunications, including internet) across twelve European countries. Contrasting stated and revealed preferences has been applied to policy on transportation, marketing and the environment: this article pioneers the application of this technique to the analysis of satisfaction with household utilities across multiple countries. We find strong evidence that consumers’ socio-economic category matters: consumers with lower levels of education, the elderly and those who are not employed exhibit particular expenditure patterns and lower satisfaction levels vis-à-vis some of or all the services under analysis. We conclude by highlighting how our findings may be of use to regulators in the ongoing quest to improve the quality of utility regulation. |
| Keywords: | Utilities, regulation, satisfaction, socio-economic background, consumers, stated and revealed preferences. |
| JEL: | D12 D18 L9 L97 L98 |
| Date: | 2013–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47271&r=reg |
| By: | Daniel Albalate (Faculty of Economics, University of Barcelona); Germà Bel (Faculty of Economics, University of Barcelona); Xavier Fageda (Faculty of Economics, University of Barcelona) |
| Abstract: | Spain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy. Based on our analysis, we also discuss policy remedies and suggest reforms in different regulatory areas, which could help improve the performance of Spain’s infrastructure policy. |
| Keywords: | Infrastructure, Overcapacity, Regulation, Spain. JEL classification: H54; L91; L98; R41; R42; R48 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201312&r=reg |
| By: | Anna Pechan (University of Oldenburg, Department of Economics); Klaus Eisenack (University of Oldenburg, Department of Economics) |
| Abstract: | Thermoelectric power plants depend on cooling water drawn from water bodies. Low river run-off and/or high water temperatures limit a plant’s production capacity. This problem may intensify with climate change. To what extent do such capacity reductions affect electricity spot markets? Who bears the consequent costs? How is this influenced by climate change and a change in the electricity generation system? We quantify these effects by means of a bottom-up power generation system model. First, we simulate the German electricity spot market during the heat wave in 2006, and then conduct a sensitivity study that accounts for future climatic and technological conditions. We find an average price increase of 11%, which is even more pronounced during times of peak demand. Production costs accumulate to additional but moderate e15.9 m during the two week period. Due to the price increase producers gain from the heat wave and consumers disproportionately bear the costs. Carbon emissions increase during the heat wave. The price and cost effects are more pronounced and significantly increase if assumptions on heat-sensitive demand, hydro power capacity, net exports and capacity reductions are tightened. These are potential additional effects of climate change. Hence, if mitigation fails or is postponed<br>globally, the impacts on the current energy system are very likely to rise. Increases in feed-in from renewable resources and demand-side management can counter the effects to a considerable degree. Countries with a shift to renewable energy supply can be expected to be much less susceptible to water scarcity than those with a high share of nuclear and coal-fired power plants. |
| Keywords: | Electricity Market, Heat Wave, Germany, Climate Change |
| JEL: | Q41 Q54 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:357&r=reg |
| By: | Cantos Sánchez Pedro (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie)); Serrano Martínez Lorenzo (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie)); Pastor Monsálvez José Manuel (UNIVERSITY OF VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie)) |
| Abstract: | A vast amount of literature is devoted to analyzing the effects of deregulating and restructuring measures in the European railway sector and the results are not totally unambiguous. The contribution of this paper to the existing literature is twofold. Firstly, we estimate efficiency levels derived from two alternative approaches: a non-parametric DEA analysis and a parametric stochastic frontier production. Using two different approaches allows us to test if the heterogeneous results obtained in the literature are due to the different approaches used to measure efficiency. Secondly, we update the sample introducing a data panel with information on 23 national rail systems, and covering data from 2001 to 2008. It is fundamental to use extended and updated data covering the more recent period and more countries, given that most deregulation measures have been implemented in the last few years. |
| Keywords: | Efficiency, railways, regulation. |
| JEL: | D24 L92 L51 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:fbb:wpaper:2012124&r=reg |
| By: | Francisco Gallego; Juan-Pablo Montero; Christian Salas |
| Abstract: | In an effort to reduce pollution and congestion, Latin American cities have experimented with different policies to persuade drivers to give up their cars in favor of public transport. Borrowing from the bundling literature, the paper presents a novel model of vertical and horizontal differentiation applied to transport decisions: households differ in their preferences for transportation modes -cars vs public transport- and in the amount of travel. The model captures in a simple way a household's response to a policy shock, i.e., how to allocate existing car capacity, if any, to competing uses (peak vs off-peak hours) and how to adjust such capacity overtime. Using few observables, the model is then used to analyze the effects of two major transport policies: the driving restriction program introduced in Mexico-City in November of 1989 -Hoy-No-Circula (HNC)- and the public transport reform carried out in Santiago in February of 2007 -Transantiago (TS). The model's simulated effects are not only consistent with the econometric estimates in Gallego et al (2013) but also help understand the mechanisms that explain them. |
| Keywords: | public transport, driving restrictions, pollution, congestion |
| JEL: | R41 Q53 Q58 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:432&r=reg |