Promoting Competition with Open Access under Uncertainty∗
نویسندگان
چکیده
This paper examines the effect of open access policy on competition in network industries under uncertainty. Comparing a competition under an open access policy with a facility-based competition, we confirm that allowing access to an essential facility makes the timing of a follower’s entry earlier than that in a facility-based competition, irrespective of the level of access charge. Furthermore, a leader’s (i.e., an incumbent’s) incentive for network investment under open access policy can be larger than without open access, depending on the relative magnitude between the level of access charge and positive network externality generated by an additional network facility.
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