Arbeitspapier
From legacy to the future: Incentivising demand migration through access fees
In this paper, we analyze how wholesale access fees of a crucial input can be utilized to influence demands for products of different technologies and the deployment sequence between an incumbent and entrant firm. In a setting of multi-product competition with horizontally differentiated products we find that the access fee gives rise to asymmetric pricing incentives for the entrant firm if she offers a legacy and new product in parallel. The entrant's price for the new product decreases in the access fee while its legacy price increases with the aim to induce intra-brand legacy-to-new migration of demand. Fur- thermore, a regulator can depart from the socially optimal access fee and use this entrant's pricing channel to effectively promote demand side take-up of the new technology. Lastly, it is welfare beneficial in a sequential deployment process, that the entrant moves first to introduce the new technology while such a move can be fostered by a strategic use of the access fee that lowers profits from competition based on legacy products.
- Language
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Englisch
- Bibliographic citation
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Series: WIK Working Paper ; No. 3a
- Classification
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Wirtschaft
Oligopoly and Other Imperfect Markets
Economics of Regulation
Telecommunications
- Subject
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Access pricing
Multi-product competition
Product differentiation
Next generation networks
- Event
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Geistige Schöpfung
- (who)
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Eltges, Fabian
Fourberg, Niklas
Wiewiorra, Lukas
- Event
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Veröffentlichung
- (who)
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WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste
- (where)
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Bad Honnef
- (when)
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2022
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Eltges, Fabian
- Fourberg, Niklas
- Wiewiorra, Lukas
- WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste
Time of origin
- 2022