Do market failures hamper the perspectives of broadband?

This report analyses the broadband market and asks whether a specific role of government is necessary. As broadband telecommunication is seen as a source of productivity gains, the European Union and other regions are encouraging the deployment of a secure broadband infrastructure. In the Netherlands, there is some concern whether the supply of broadband capacity will meet the strongly increasing demand. The main conclusions are that presently, given current broadband policy, no considerable market failures exist. Firms have adequate incentives to invest in broadband, partly induced by specific regulation of access to the local copper loop. Hence, there is no need for changes in current broadband policy. Market failures in terms of knowledge spillovers are taken care of by other policies. As the broadband markets are very dynamic, unforeseen developments may emerge such as the appearance of new dominant techniques and market players. The best strategy for the government, in particular the competition authority, is to continuously monitor these markets, making timely intervention easier when needed.

Network Rules

Crawford compares the debate between the telcos and the online companies over broadband access regimes often called the network neutrality debate to the ongoing tussle between intellectual property maximalists and free culture advocates which are strikingly parallel sets of arguments. The maximalists claim that creativity comes from lone genuises (the romantic author) who must be given legal incentives to works but intellectual property scholars have carefully examined the incentives of their arguments and have pointed out that granting overly strong property rights to copyright holders might not be socially appropriate. Moreover, the network providers claim that they (the romantic builders) must be allowed by law to price-discriminate vis-a-vis content sources in order to be encouraged to build the network

The case for industrial policy : a critical survey

What are the underlying rationales for industrial policy? Does empirical evidence support the use of industrial policy for correcting market failures that plague the process of industrialization? To address these questions, the authors provide a critical survey of the analytical literature on industrial policy. They also review some recent industry successes and argue that only a limited role was played by public interventions. Moreover, the recent ascendance of international industrial networks, which dominate the sectors in which less developed countries have in the past had considerable success, implies a further limitation on the potential role of industrial policies as traditionally understood. Overall, there appears to be little empirical support for an activist government policy even though market failures exist that can, in principle, justify the use of industrial policy.Economic Theory&Research,ICT Policy and Strategies,Water and Industry,Industrial Management,Markets and Market Access

Platform interconnection and quality incentives

We analyze competition between two platforms with positive network externalities. Platforms can choose to interconnect or alternatively, operate exclusively. We examine how this decision will affect pricing behaviour and incentives to invest in Platform quality. We find that interconnection is aa means to reduce externalities one side exerts on the other. It changes the mode of competition for subscribers and resultsin higher subscription prices. Further, even though interconnection allows for quaality spillovers to the rival platform, it results in higher quality investment than the case of exclusive platforms. Coordination will facilitate collusion on the lowest quality levels possible if its provision is costly. For low quality costs it will lead to asymmetric networks. Therefore, interconnection without coordinated investment activities is welfare maximising. --Two-sided markets,interconnection,investment in transaction quality

Networks, Market Structures and Economic Shocks: The structural changes of Innovation Systems in Latin America

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The coherence of EU trade, competition, and industry policies in the high tech sector : the case of the telecommunications services sector

We analyze the coherence existing among European Union competition, industry, and trade policies in the high tech sector in general terms focusing on its specific features (externalities, fast progress) and their effects on the emergence and treatment of policy consistency and conflicts. Second, this analysis is applied to the European telecommunications services sector. The examination of this sector and the relevant EU policies reveals a consensus on giving priority to competition. However structural factors prevent policy implementation to reflect much liberalization and harmonization and business responses to trade globalization challenge effective competition. The potential, important role of standardization is shown.economics of technology ;

XXQ FACTORS FOR SUSTAINABLE URBAN DEVELOPMENT: A SYSTEMS ECONOMICS VIEW

Modern cities turn increasingly into functional areas seeking for a balance between agglomeration forces and urban quality of life. This paper will address the issue of sustainable urban development from a quality (performance) perspective. It aims to identify the critical access factors for the highest possible quality (XXQ) of the urban economy. A plea is made for a coherent methodological approach based on a systems economic view. In addition to a sketch of recent dynamic trends in urban systems in OECD countries, it pays attention to theories on urban growth and performance. Next, five critical success conditions for a high performance of cities will be presented in a coherent urban systems economics framework. The policy lessons of the analysis will form the last part of the paper.urban development, sustainability, critical access factors, systems economics