Proceedings of the Korea Technology Innovation Society Conference (한국기술혁신학회:학술대회논문집)
- 2000.05a
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- Pages.483-492
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- 2000
Revenue-Sharing Regulation of Interconnection Charges
- Kim, Jeong-Yoo (Department of Economics Dongguk University) ;
- Lim, Yoon-Sung (Department of Economics Dongduk Women's University)
- Published : 2000.05.01
Abstract
In this paper, we explore the economic principle behind the revenue-sharing rule for interconnection charges. First, we assert that firms can collude by splitting tile revenues equally i.e., choosing the revenue-sharing ratio equal to l/2. Also, we characterize the optimal revenue-sharing ratio in a model of horizontal interconnection and discuss the relation between the optimal ratio and the optimal access price.
Keywords