Regulation and the vertically integrated firm: The case of RBOC entry into interlata long distance

摘要: Congress is considering telecommunications reform legislation that would allow the Regional Bell Operating Companies (RBOCs) to enter interLATA long-distance market. A concern a vertically-integrated RBOC be able discriminate against its rivals. proposed remedy require RBOCs reduce their access market share as precondition entry. We show formally such likely contributes higher prices and enhances risk of discrimination. Furthermore, lower profits retained by an RBOC, weaker are incentives prices.