Prevention of competition by competition law: Evidence from unbundling regulation on fiber-optic networks in Japan

Arbeitspapier

This paper finds that a regulation that promotes competition in one market may decrease competition in other related markets. Policy makers in the telecommunication industry currently are facing an important decision about whether to continue unbundling regulations on new optical-fiber lines. I find that unbundling regulation prevents new providers from building optical-fiber networks, by estimating a dynamic entry game with a dataset of fiber-optic network constructions in Japan from 2005 to 2009. In particular, when a new technology is introduced, unbundling regulation has an oligopolization effect on the regulated firms. This finding in the Japanese telecommunications industry suggests that unbundling regulation during periods of new technology diffusion may reduce the price of service but also decrease competition in the infrastructure market.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 804

Classification and Topics

• Classification: Wirtschaft ; Antitrust Law ; Legal Monopolies and Regulation or Deregulation ; Telecommunications
• Subject: Unbundling ; FTTH ; Entry and Exit ; Dynamic Game ; Fiber-optic Networks ; Entflechtung ; Telekommunikationsnetz ; Breitbandkommunikation ; Netzregulierung ; Markteintritt ; Marktaustritt ; Dynamisches Spiel ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Minamihashi, Naoaki
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/92632
• Last update: 10.03.2025, 11:45 AM CET