Non-discriminatory access pricing for multiple entrants

Abstract

Competing with a vertically integrated incumbent that monopolizes a vital input typically requires access to the input for the supply of final services. The possibility of anti-competitive behavior makes the pricing of access one of the most important issues in the network industries. The existence of multiple entrants seeking access creates a yet another requirement of non-discriminatory to regulatory agencies who in general cannot make discrimination between one entrant and another. The present paper aims to analyze how this non-discriminatory requirement can be dealt with in deriving the optimal access pricing rules in relation to the ECPR formulas.