Publications
Publications
- March 2002
- Information Economics and Policy
The Potential Role of Economic Cost Models in the Regulation of Telecommunications in Developing Countries
Abstract
What is the efficient cost of providing telecommunications services to a certain area or type of customer? As developing countries build up their capacity to regulate infrastructure monopolies, cost models are likely to prove increasingly important in answering this question, but without information no real answer can be given. In this paper, we will introduce cost models and establish their applicability when different degrees of information are available to the regulator. Reliable and detailed information is generally a scarce good in developing countries, and we establish here the minimum information requirements that a regulator needs to implement a cost proxy model approach, showing that this "data constraint" need not be that binding.
Keywords
Information; Cost; Mathematical Methods; Developing Countries and Economies; Telecommunications Industry
Citation
Ruzzier, Christian Alejandro, D. Benitez, A. Estache, and D. M. Kennet. "The Potential Role of Economic Cost Models in the Regulation of Telecommunications in Developing Countries." Information Economics and Policy 14, no. 1 (March 2002): 21–38.