Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62157
Title: 

Ex-ante margin squeeze tests in the telecommunications industry: What is a reasonably efficient operator? (Revised: September 6, 2012)

Authors: 
Gaudin, Germain
Saavedra Valenzuela, Claudia
Year of Publication: 
2012
Series/Report no.: 
23rd European Regional Conference of the International Telecommunication Society, Vienna, Austria, 1-4 July 2012
Abstract: 
In this paper, we study the adjustments made by National Regulatory Authorities to simple margin squeeze tests, in order to model a reasonably efficient operator. More precisely, by inspecting the possible differences between an entrant and an incumbent that would cause a market disadvantage for the former, we provide a formal economic framework that translates these ex-ante disadvantages into practical test adjustments. We identify five possible adjustments relevant to ex-ante margin squeeze tests, on the cost, the access charge, or the price parameters. We then review the implementation of margin squeeze tests by European telecommunications National Regulatory Authorities according to these adjustments, as to build a comparable benchmark of implementation choices.
Subjects: 
Margin squeeze
Imputation test
Access regulation
Telecommunications
JEL: 
L51
L96
Additional Information: 
Revised Version: September 6, 2012
Is replaced by the following version: 
Document Type: 
Conference Paper

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