@article{a6e0b5779a63432788fa4bb9b64dbd21,
title = "Cooperative investment, access, and uncertainty",
abstract = "This paper compares the impacts of traditional one-way access obligations and the new regulatory scheme of co-investment on the roll-out of network infrastructures. We show that compulsory access leads to smaller roll-out, first because it reduces the returns from investment, and second because in the presence of uncertainty it provides access seekers with an option whose exercise hurts investors. Co-investment without access obligations leads to risk sharing and eliminates the access option, implying highest network coverage. Allowing for access on top of co-investment actually decreases welfare if the access price is low.",
keywords = "Access obligations, Co-investment, Next generation networks, Uncertainty",
author = "Marc Bourreau and Carlo Cambini and Steffen Hoernig",
note = "An earlier but substantially different version of this paper was circulated as {"}Cooperative Investment, Uncertainty and Access{"} (CEPR Discussion Paper No. DP9376). We would like to thank Emilio Calvano, Jan Kramer, Marc Lebourges, Keizo Mizuno, Martin Peitz, Tommaso Valletti, and Ingo Vogelsang for valuable comments and suggestions on earlier drafts. Marc Bourreau acknowledges financial support from the Orange/Telecom ParisTech partnership. Steffen Hoernig acknowledges funding by FCT - Fundacao para a Ciencia e Tecnologia under the project ref. UID/ECO/00124/2013 and by POR Lisboa under the project LISBOA-01-0145-FEDER-007722.",
year = "2018",
month = jan,
day = "1",
doi = "10.1016/j.ijindorg.2017.11.004",
language = "English",
volume = "56",
pages = "78--106",
journal = "International Journal of Industrial Organization",
issn = "0167-7187",
publisher = "Elsevier Science B.V., Amsterdam.",
}