Network externalities - the economics of universal access
Privatisation of telecommunications across the globe over the 1980s and 1990s has thrown up various regulatory problems. There are many political and social reasons for governments desiring universal access; this paper sets these to one side to focus on the key economic rationale for having a more e...
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| Format: | Journal article |
| Language: | English |
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Pergamon
1997
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| Subjects: |
| _version_ | 1826259297003110400 |
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| author | Michie, J |
| author_facet | Michie, J |
| author_sort | Michie, J |
| collection | OXFORD |
| description | Privatisation of telecommunications across the globe over the 1980s and 1990s has thrown up various regulatory problems. There are many political and social reasons for governments desiring universal access; this paper sets these to one side to focus on the key economic rationale for having a more extensive network than might be forthcoming were private companies to operate on a profit-maximising basis without being subject to regulation. Welfare is increased by subsidising additional subscribers, since the existing subscribers enjoy benefits of an extended network that the marginal subscribers would not take into account when calculating private costs and benefits. |
| first_indexed | 2024-03-06T18:47:37Z |
| format | Journal article |
| id | oxford-uuid:0f10a41c-865c-41f3-86d1-343e0cecbd28 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T18:47:37Z |
| publishDate | 1997 |
| publisher | Pergamon |
| record_format | dspace |
| spelling | oxford-uuid:0f10a41c-865c-41f3-86d1-343e0cecbd282022-03-26T09:49:21ZNetwork externalities - the economics of universal accessJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:0f10a41c-865c-41f3-86d1-343e0cecbd28EconomicsBusinessEnglishOxford University Research Archive - ValetPergamon1997Michie, JPrivatisation of telecommunications across the globe over the 1980s and 1990s has thrown up various regulatory problems. There are many political and social reasons for governments desiring universal access; this paper sets these to one side to focus on the key economic rationale for having a more extensive network than might be forthcoming were private companies to operate on a profit-maximising basis without being subject to regulation. Welfare is increased by subsidising additional subscribers, since the existing subscribers enjoy benefits of an extended network that the marginal subscribers would not take into account when calculating private costs and benefits. |
| spellingShingle | Economics Business Michie, J Network externalities - the economics of universal access |
| title | Network externalities - the economics of universal access |
| title_full | Network externalities - the economics of universal access |
| title_fullStr | Network externalities - the economics of universal access |
| title_full_unstemmed | Network externalities - the economics of universal access |
| title_short | Network externalities - the economics of universal access |
| title_sort | network externalities the economics of universal access |
| topic | Economics Business |
| work_keys_str_mv | AT michiej networkexternalitiestheeconomicsofuniversalaccess |