• No results found

Competition and compatibility among Internet service providers

N/A
N/A
Protected

Academic year: 2022

Share "Competition and compatibility among Internet service providers"

Copied!
22
0
0

Laster.... (Se fulltekst nå)

Fulltekst

(1)

&RPSHWLWLRQDQG&RPSDWLELOLW\DPRQJ,QWHUQHW6HUYLFH 3URYLGHUV

‘\VWHLQ)RURV

1RUZHJLDQ6FKRRORI(FRQRPLFVDQG%XVLQHVV$GPLQLVWUDWLRQ7HOHQRU5HVHDUFKDQG 'HYHORSPHQW

R\VWHLQIRURV#QKKQR

%M¡UQ+DQVHQ

7HOHQRU5HVHDUFKDQG'HYHORSPHQW EMRUQKDQVHQ#WHOHQRUFRP

$EVWUDFW

:HFRQVLGHUDWZRVWDJHJDPHEHWZHHQWZRFRPSHWLQJ,QWHUQHW6HUYLFH3URYLGHUV ,63V7KHILUPVRIIHUDFFHVVWRWKH,QWHUQHW$FFHVVLVDVVXPHGWREHYHUWLFDOO\DQG KRUL]RQWDOO\GLIIHUHQWLDWHG2XUPRGHOH[KLELWVQHWZRUNH[WHUQDOLWLHV,QWKHILUVWVWDJH WKHWZR,63VFKRRVHWKHOHYHORIFRPSDWLELOLW\LHTXDOLW\RIDGLUHFWLQWHUFRQQHFWOLQN EHWZHHQWKHWZRQHWZRUNV,QWKHVHFRQGVWDJHWKHWZR,63VFRPSHWHiOD+RWHOOLQJ :HILQGWKDWWKH,63VFDQUHGXFHWKHVWDJHFRPSHWLWLYHSUHVVXUHE\LQFUHDVLQJ FRPSDWLELOLW\GXHWRWKHQHWZRUNH[WHUQDOLW\7KHILUPVZLOOWKXVDJUHHXSRQDKLJK FRPSDWLELOLW\DWVWDJH:KHQLWLVFRVWO\WRLQYHVWLQFRPSDWLELOLW\ZHILQGWKDWWKH ILUPVRYHULQYHVWDVFRPSDUHGWRWKHZHOIDUHPD[LPLVLQJLQYHVWPHQWOHYHO

.H\ZRUGV&RPSDWLELOLW\,QWHUQHW&RPSHWLWLRQ'XRSRO\

-(/FODVVLILFDWLRQ///

'LVFXVVLRQSDSHU'HSDUWPHQWRI(FRQRPLFV1++

)RUKHOSIXOGLVFXVVLRQVDQGFRPPHQWVZHWKDQN+DQV-DUOH.LQG7RUH1LOVVHQ%M|UQ5XSS-DQ

<QJYH6DQGDQGVHPLQDUSDUWLFLSDQWVDWWKHQG%HUOLQ,QWHUQHW(FRQRPLFV:RUNVKRSDWWKH($5,(

FRQIHUHQFHDQGDW)RXQGDWLRQIRU5HVHDUFKLQ(FRQRPLFVDQG%XVLQHVV$GPLQLVWUDWLRQ

&RUUHVSRQGLQJDXWKRU7HOHQRU5HVHDUFKDQG'HYHORSPHQW32%R[1.MHOOHU1RUZD\

(PDLOEMRUQKDQVHQ#WHOHQRUFRP

(2)

,,QWURGXFWLRQ

:HFRQVLGHUFRPSHWLWLRQEHWZHHQWZR,63V,QWHUQHW6HUYLFH3URYLGHUVRSHUDWLQJLQ WKHVDPHDUHD7KHSURGXFWIURPWKHVHVHUYLFHSURYLGHUVLVEDVLFDOO\DFFHVVWRWKH ,QWHUQHWDQGWKH,63VRSHUDWHWKHLURZQORFDOQHWZRUN,QWHUQHWDFFHVVLVDVVXPHGWR EHKRUL]RQWDOO\DQGYHUWLFDOO\GLIIHUHQWLDWHGIURPWKHFXVWRPHU¶VSRLQWRIYLHZ )XUWKHUPRUHZHDVVXPHWKDWWKHUHDUHSRVLWLYHFRQVXPSWLRQH[WHUQDOLWLHV

&RPSHWLWLRQLVPRGHOOHGDVDWZRVWDJHJDPH,QWKHILUVWVWDJHWKH,63VGHWHUPLQHWKH TXDOLW\RILQWHUFRQQHFWLRQ7KLVFKRLFHRILQWHUFRQQHFWLRQTXDOLW\FDQEHFRQVLGHUHGDV DFKRLFHRIFRPSDWLELOLW\EHWZHHQWKHQHWZRUNV,QWKHVHFRQGVWDJHIRUJLYHQ

FRPSDWLELOLW\WKHWZRILUPVFRPSHWHj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

KDYHDQRQGLVFORVXUHSROLF\ZLWKUHVSHFWWRWKHDJUHHPHQWV

7KHPDMRULW\RIWKHOLWHUDWXUHRQ,QWHUQHWHFRQRPLFVIRFXVHVRQWKH86PDUNHW,Q FRQWUDVWRXUSDSHULVPRWLYDWHGE\WKHVLWXDWLRQIRUFRPSHWLQJ,63VRXWVLGH86$

3UHYLRXVO\WKHDWWHQWLRQLQWKH,63PDUNHWVRXWVLGH86$KDVEHHQGLUHFWHGWRWKH

7KHTXDOLW\LQWKHQHWZRUNLVGHWHUPLQHGE\WKHUDWLREHWZHHQFDSDFLW\DQGORDG7KHORDGLVYDU\LQJ RQDYHU\VKRUWWLPHVFDOH7KXVLWLVKDUGWRREVHUYHWKHTXDOLW\GLIIHUHQWLDOEHWZHHQRIIDQGRQQHW WUDIILFIURPWKHRXWVLGH$FXVWRPHURIDSDUWLFXODU,63ZLOOKRZHYHUJDLQH[SHULHQFHRYHUWLPHZLWK SDUWLFXODUURXWHVDQGWKXVEHLQDSRVLWLRQWRDVVHVVWKHTXDOLW\GLIIHUHQWLDO

(3)

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

JHRJUDSKLFDODUHDDVFRPSDUHGWRZKDWLVWKHFDVHIRUFRQYHQWLRQDO,QWHUQHWVHUYLFHV VXFKDVZHEEURZVLQJ7KXVWKHLPSRUWDQFHRIORFDOLQWHUFRQQHFWLRQDVDVWUDWHJLF YDULDEOHKDVLQFUHDVHG

8WLOLW\IURPQHWZRUNSDUWLFLSDWLRQGHSHQGVRQWKHQXPEHURISRWHQWLDOFRPPXQLFDWLRQ SDUWQHUVDQGWKHTXDOLW\RIWKLVFRPPXQLFDWLRQ)RUJLYHQPDUNHWVKDUHVWKH

FXVWRPHU¶VZLOOLQJQHVVWRSD\LVLQFUHDVLQJLQLQWHUFRQQHFWLRQTXDOLW\,WLVQRW

REYLRXVKRZHYHUWKDWFRPSHWLQJILUPVZLOOFKRRVHDKLJKTXDOLW\,QWKHSUHVHQFHRI QHWZRUNH[WHUQDOLWLHVFXVWRPHUVZLOOFHWHULVSDULEXVFRQVLGHULWPRUHDGYDQWDJHRXVWR FKRRVHWKHODUJHU,63LIWKHFKRVHQTXDOLW\RILQWHUFRQQHFWLRQLVUHGXFHG$ODUJH,63 PD\DFFRUGLQJO\FKRRVHDORZLQWHUFRQQHFWLRQTXDOLW\LQRUGHUWRLQFUHDVHLWVPDUNHW VKDUH

)ROORZLQJVHYHUDOUHFHQWVWXGLHVRIWKHFRPSHWLWLRQLQWKHWHOHFRPPXQLFDWLRQPDUNHW HJ/DIIRQW5H\DQG7LUROHDEZHDVVXPHWKDWILUPVRIIHUKRUL]RQWDOO\

GLIIHUHQWLDWHGJRRGV7KHPRWLYDWLRQIRUWKLVKRUL]RQWDOGLIIHUHQWLDWLRQLVUHFHLYLQJ OLWWOHDWWHQWLRQLQWKHOLWHUDWXUH,QRXUVHWWLQJSURGXFWGLIIHUHQWLDWLRQLQWKHKRUL]RQWDO GLPHQVLRQPD\EHJLYHQVHYHUDOLQWHUSUHWDWLRQV&XVWRPHUVRI,63VDUHW\SLFDOO\

%DDNHDQG:LFKPDQQDUHIRFXVLQJRQWKH*HUPDQPDUNHW(UJDVDQG/LWWOHHWDO DQDO\]HWKH$XVWUDOLDQPDUNHWZKLOH0XHOOHUHWDOGHVFULEHWKHVLWXDWLRQLQ+RQJ.RQJ

(4)

EX\LQJVRPHFRPSOHPHQWDU\SURGXFWVWRWKH,QWHUQHWDFFHVV3ULYDWHFXVWRPHUV FRQQHFWWRWKH,63YLDWKHWHOHSKRQHOLQHWKHWHOHYLVLRQFDEOHRUWKHPRELOHSKRQH V\VWHP0RVW,63VDUHRZQHGE\RUDUHLQFRRSHUDWLRQZLWKDVXSSOLHURIORFDO DFFHVVVXFKDVFDEOHWYRUORFDOWHOHSKRQHRSHUDWRUV7KLVLVRQHVRXUFHRIKRUL]RQWDO GLIIHUHQWLDWLRQVLQFHHJFDEOHWYDFFHVVVXSSOLHUVFDQRIIHUWKHEHVWLQFRPLQJ FDSDFLW\ZKLOHORFDOWHOHSKRQ\FRPSDQLHVKDYHPRUHH[SHULHQFHZLWKVZLWFKLQJ WHFKQRORJLHVDQGWZRZD\FRPPXQLFDWLRQV$FXVWRPHUPDLQO\ORRNLQJIRU

LQWHUDFWLYHWYDQGVHFRQGO\LQWHUQHWFRQQHFWLYLW\ZLOOSUREDEO\SUHIHUWKHVHUYLFHIURP DQ,63WKDWLVDVXEVLGLDU\RIDFDEOHWYSURYLGHU,QFRQWUDVWIRUKRPHRIILFHLQWHUQHW FRQQHFWLYLW\WKHFXVWRPHUPD\SUHIHUDVXEVLGLDU\RIDWHOHSKRQHSURYLGHU&XVWRPHUV ZLWKSUHIHUHQFHVIRUPRELOLW\FKRRVHPRELOHZLUHOHVVDFFHVVDOWKRXJKWKHFDSDFLW\LV ORZHUWKDQIRUHJFDEOHWYDFFHVV

$QRWKHUVRXUFHRIKRUL]RQWDOGLIIHUHQWLDWLRQLVWKHDOOLDQFHVEHWZHHQ,63VDQGFRQWHQW SURYLGHUV7KH,63VPD\FKRRVHWRVSHFLDOL]HLQRIIHULQJKLJKTXDOLW\RIVRPHVHUYLFHV DQGWKXVDWWUDFWLQJFXVWRPHUVSUHIHUULQJWKHVHVHUYLFHV,QWKH$2/7LPH:DUQHU PHUJHUDKRWWRSLFKDVEHHQZKHWKHUYHUWLFDOLQWHJUDWLRQRIDFRQWHQWFRPSDQ\7LPH :DUQHUDQGDQ,63$2/PD\FUHDWHLQFHQWLYHVWRIRUHFORVHULYDOVIURPDFFHVVLQJ VRPHVHUYLFHV³DZDOOHGJDUGHQVWUDWHJ\´

5HODWHG/LWHUDWXUH

7RRXUNQRZOHGJHWKHUHDUHIHZSDSHUVH[SOLFLWO\FRQVLGHULQJ,63FRPSHWLWLRQDQG FRPSDWLELOLW\FKRLFH&UpPHU5H\DQG7LUROHDQG0DVRQDUHQRWDEOH H[DPSOHV

2WKHUSDSHUVORRNLQJLQWR,63FRPSHWLWLRQDUH'DQJ1JX\HQDQG3HQDUGDQG%DDNHDQG :LFKPDQQ)XUWKHUPRUHWKHUHDUHVRPHSDSHUVORRNLQJLQWRFRQJHVWLRQFRQWUROIRU,63VXQGHU FRPSHWLWLRQVHHHJ*LEERQV0DVRQDQG6WHLQEHUJDQG0DVRQ

(5)

:HDUHKHUHIROORZLQJ&UqPHU5H\DQG7LUROHE\PRGHOOLQJQHWZRUN H[WHUQDOLWLHVVXFKWKDWFXVWRPHUVEHQHILWIURPDQLQFUHDVHLQQHWZRUNVL]HDQG IXUWKHUPRUHWKHSRVLWLYHQHWZRUNHIIHFWLVDIXQFWLRQRIWKHGHJUHHRIFRPSDWLELOLW\

,QFRQWUDVWWRWKHPRGHOLQWKHSUHVHQWSDSHU&Up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

0DVRQPRGHOV,63FRPSHWLWLRQZLWKERWKKRUL]RQWDODQGYHUWLFDO

GLIIHUHQWLDWLRQDQGIXUWKHUPRUHZLWKDWLPLQJVWUXFWXUHVLPLODUWRRXU,QOLQHZLWK RXUUHVXOWV0DVRQILQGVWKDWFRPSDWLELOLW\UHVXOWVLQUHGXFHGFRPSHWLWLYHSUHVVXUH +RZHYHULQKLVSDSHUWKHILUPVFKRRVHEHWZHHQSHUIHFWFRPSDWLELOLW\DQG

LQFRPSDWLELOLW\DWVWDJHDQGKHQFHKHGRHVQRWVHHWKHSRVLWLYHH[WHUQDOLW\DVD FRQWLQXRXVIXQFWLRQRIFRPSDWLELOLW\&RQVHTXHQWO\LWLVQRWVWUDLJKWIRUZDUGWR FRQVLGHUTXHVWLRQVRIRYHULQYHVWPHQWLQFRPSDWLELOLW\LQWKH0DVRQPRGHO

7KHVWUDWHJLFHIIHFWRILQWHUFRQQHFWLRQTXDOLW\GRHVDOVRKDYHPDQ\VLPLODULWLHVZLWK WKHVWUDWHJLFHIIHFWRILQWHUFRQQHFWSULFHIRUJLYHQTXDOLW\LQWHOHSKRQ\QHWZRUNV,Q WHOHSKRQ\QHWZRUNVWKHSRVLWLYHH[WHUQDOLW\HIIHFWRIKDYLQJPDQ\VXEVFULEHUVRQ FRPSHWLQJQHWZRUNVLVUHGXFHGZKHQWKHSULFHRIPDNLQJFDOOVDFURVVQHWZRUNV LQFUHDVH,QWKHOLPLWLQJFDVHZLWKH[WUHPHO\KLJKSULFHRIPDNLQJRIIQHWFDOOVWKH WHOHSKRQ\VXEVFULEHUZLOOEHLQGLIIHUHQWDVWRWKHVL]HRIWKHFRPSHWLQJQHWZRUN$

7KH0DVRQPRGHOH[KLELWVERWKYHUWLFDODQGKRUL]RQWDOKHWHURJHQHLW\LQFRQVXPHUSUHIHUHQFHV 7KHUHODWLYHZHLJKWRIYHUWLFDODQGKRUL]RQWDODVSHFWVLVSDUDPHWHULVHG,QWKHH[WUHPHFDVHZLWKRQO\

KRUL]RQWDOFRQVXPHUKHWHURJHQHLW\0DVRQREWDLQVVLPLODUUHVXOWDVLQWKHSUHVHQWSDSHUZLWKUHVSHFWWR FRPSDWLELOLW\

(6)

KLJKLQWHUFRQQHFWLRQSULFHZLOODFFRUGLQJO\KDYHVLPLODUVWUDWHJLFHIIHFWVDVDORZ LQWHUFRQQHFWLRQTXDOLW\%RWKLQWKHWHOHSKRQ\LQWHUFRQQHFWLRQPRGHOVDVZHOODVWKH SUHVHQWSDSHUQHWZRUNH[WHUQDOLWLHVGULYHVWKHVWUDWHJLFHIIHFWRILQWHUFRQQHFWTXDOLW\

2XUSDSHULVRUJDQL]HGDVIROORZV,QVHFWLRQ,,ZHSUHVHQWDEULHIRYHUYLHZRIWKH QHWZRUNVWUXFWXUH,QVHFWLRQ,,,ZHSUHVHQWRXUPRGHO)LQDOO\LQVHFWLRQ,9ZH FRQFOXGH

,,$EULHIRYHUYLHZRIWKHQHWZRUNVWUXFWXUH

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

RIRIIQHWWUDIILFWKURXJKWKHSXEOLFLQWHUFRQQHFWLRQSRLQWEHNZKHUHN N< :H DVVXPHWKDWWKLVSXEOLFLQWHUFRQQHFWLRQSRLQWLVDGPLQLVWUDWHGDQGFRQWUROOHGE\DQRQ FRPPHUFLDOWKLUGSDUW\7KHTXDOLW\OHYHODWWKHSXEOLFLQWHUFRQQHFWLRQSRLQWLV DVVXPHGWREHRXWVLGHWKHFRQWURORIERWK,63$DQG,63%

6HH/DIIRQW5H\DQG7LUROHDEDQG$UPVWURQJ)XUWKHUPRUHLQ/DIIRQWDQG 7LUROHLWLVSURYLGHGDQH[WHQVLYHRYHUYLHZRILQWHUFRQQHFWLRQVWUDWHJ\UHODWHGWR

WHOHFRPPXQLFDWLRQ

6XFKH[WHUQDOLWLHVZHUHILUVWJLYHQDWKHRUHWLFDOWUHDWPHQWE\5RKOIV7KHVWUDWHJLFHIIHFWRI QHWZRUNH[WHUQDOLWLHVRQFRPSHWLWLRQZDVUHFRJQL]HGE\.DW]DQG6KDSLUR$VSRLQWHGRXWE\

.DW]DQG6KDSLURH[WHUQDOLWLHVDQGWKHFKRLFHRIFRPSDWLELOLW\DUHFORVHO\UHODWHG

%DLOH\DQG0F.QLJKWGHVFULEHGIRXULQWHUFRQQHFWLRQPRGHOVZKHUHH[FKDQJHSRLQWGHVFULEHG KHUHUHIHUVWRZKDWWKH\FDOOHG7KLUG3DUW\$GPLQLVWUDWRU7KHRWKHUFDWHJRULHVDUH3HHUWR3HHU

%LODWHUDO+LHUDUFKLFDO%LODWHUDODQG&RRSHUDWLYH$JUHHPHQW

7KHIUHTXHQWO\REVHUYHGERWWOHQHFNSUREOHPVLQSXEOLFLQWHUFRQQHFWLRQSRLQWVLQERWK(XURSHDQGWKH 86VHHHJ.HQGHDUHLQGLFDWLRQVWKDWVLQJOH,63VQRWDUHDEOHWRLQFUHDVHWKHTXDOLW\RILWV

(7)

,QWHUQHW%DFNERQH

3XEOLF ,QWHUFRQQHFWLRQ

SRLQW

3ULYDWH ,QWHUFRQQHFWLRQ

SRLQW 2QQHW

TXDOLW\

N 2QQHW TXDOLW\

NN

2QQHW TXDOLW\

N 2QQHW TXDOLW\

N N NN

N N

,63$ ,63%

)LJXUH

,63$DQG,63%GRKRZHYHUKDYHWKHRSSRUWXQLW\WRLQYHVWLQDGLUHFWOLQNEHWZHHQ WKHLUQHWZRUNVLHWKH\FDQLQYHVWLQDGLUHFWLQWHUFRQQHFWSRLQW,IWKH\GRWKHTXDOLW\

OHYHOUHODWHGWRFRPPXQLFDWLRQEHWZHHQ,63$DQG,63%LVNZKHUH N N N≤ ≤ VHH ILJXUH7KHDLPRIWKLVSDSHULVWRDQDO\]HWKHLQFHQWLYHVFRPSHWLQJ,63VKDYHWR LPSOHPHQWVXFKGLUHFWLQWHUFRQQHFWLRQ7KHLVVXHZLOOSUREDEO\EHPRUHLPSRUWDQW ZKHQORFDODFFHVVQHWZRUNVDUHXSJUDGHGWRKLJKVSHHGLQWHUQHWFRPPXQLFDWLRQ EURDGEDQGDQGQHZEDQGZLGWKGHPDQGLQJVHUYLFHVWKDWWROHUDWHPLQRUGHOD\VUHDO WLPHVHUYLFHVDVLQWHUDFWLYHYLGHRDUHRIIHUHG7KHTXDOLW\RIIHUHGLQWKHRSHQLQWHUQHW WKHTXDOLW\OHYHONFDQQRWGHOLYHUWKHVHVHUYLFHV

,QWKLVSDSHUZHZLOOQRWFRQVLGHUWKHLQWHUSOD\EHWZHHQWKHUHJLRQDO,63VZHKDYHLQ PLQGDQGWKHEDFNERQHSURYLGHUVFRQWUROOLQJWKHFRUHJOREDOLQIUDVWUXFWXUHWKH ,QWHUQHWEDFNERQH)XUWKHUPRUHZHGRQRWIRFXVRQWKHLQWHUSOD\EHWZHHQ,63V

VHUYLFHVRYHUWKHSXEOLFLQWHUFRQQHFWLRQSRLQWV7KLVLVSUREDEO\GXHWRERWKFRRUGLQDWLRQDQGIUHHULGHU SUREOHPV

,QWHUDFWLYHVHUYLFHVPD\EHDPRQJWKHPRVWSURILWDEOHVHUYLFHVLQWKH,QWHUQHW2QHUHDVRQIRUWKH SURILWDELOLW\RILQWHUDFWLYHVHUYLFHVLVWKDWWKH\DUHOHVVSURQHWRSHUVRQDODUELWUDJHDQGUHVHOOLQJWKDQ VHUYLFHVWROHUDWLQJVRPHGHOD\V&KRLHWDO$QRWKHUUHDVRQLVWKDWFXVWRPHUVKDYHKLJKHU ZLOOLQJQHVVWRSD\IRUQHZLQIRUPDWLRQ7KLVZLOOEHHVSHFLDOO\WUXHIRUVWUDWHJLFLQIRUPDWLRQVXFKDV VWRFNH[FKDQJHUDWHV6KDSLURDQG9DULDQ

6HH&UHPHU5H\DQG7LUROHRQWKHLQWHUSOD\EHWZHHQ,QWHUQHW%DFNERQH3URYLGHUV

(8)

VHOOLQJLQWHUQHWFRQQHFWLYLW\DQGWKHSURYLGHUVRIORFDODFFHVVWKHODVWPLOHLQWR KRPHV+RZHYHUDVPHQWLRQHGDERYHWKH,63VDQGWKHORFDODFFHVVSURYLGHUVDUH RIWHQYHUWLFDOO\LQWHJUDWHG

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

,,,7KHPRGHO

7KHSUHIHUHQFHVRIFXVWRPHUVDUHDVVXPHGWREHGLVWULEXWHGXQLIRUPO\ZLWKGHQVLW\

RQDOLQHRIOHQJWK7KHWZRILUPVDDQGEDUHORFDWHGDWWKHH[WUHPHVRIWKLVXQLW OLQHILUPDLVDW[D DQGILUPELVDW[E 7KHXQLWFRVWIRUHDFKILUPLVFDQGWKH FXVWRPHUVKDYHXQLWGHPDQGV7KHORFDWLRQRISUHIHUHQFHVRQWKHXQLWOLQHLQGLFDWHV WKHPRVWSUHIHUUHGQHWZRUNW\SHIRUHDFKFXVWRPHU

1HWXWLOLW\IRUDFXVWRPHUORFDWHGDW[FRQQHFWHGWRVXSSOLHULLVDFFRUGLQJO\

8L = −Y W [ [L − + ⋅L β

3

Q NQL+ M

8

SL ZKHUH L M D E L M =

6HH.HQGHDQG*DUHLVV.HQGHJLYHVDFRPSUHKHQVLYHGHVFULSWLRQRIWKH LQWHUFRQQHFWLRQDJUHHPHQWVEHWZHHQWKHFRUHEDFNERQHSURYLGHUVDQGKHLQGLFDWHVWKDWDVPXFKDV RIWKHLQWHUQHWWUDIILFLQWKH86JRHVWKURXJKSULYDWHLQWHUFRQQHFWLRQSRLQWV

6HH&KLQR\DQG6RORDQG&DZOH\,Q*DUHLVVWKHUHLVDQRYHUYLHZRISULYDWH LQWHUFRQQHFWLRQVDJUHHPHQWV

(9)

7KHILUVWWHUPLVDIL[HGDGYDQWDJHYLRIEHLQJFRQQHFWHGWRQHWZRUN:HGHILQH θLYLYM$VORQJθL = WKHUHLVQRYHUWLFDOGLIIHUHQWLDWLRQZKLOHWKHVHUYLFHV DUHYHUWLFDOO\GLIIHUHQWLDWHGZKHQθL ≠ 7KHVHFRQGWHUPLVWKHGLVXWLOLW\IURPQRW FRQVXPLQJWKHPRVWSUHIHUUHGQHWZRUNW\SHWKHWUDQVSRUWDWLRQFRVWLQWKHVWDQGDUG +RWHOOLQJPRGHO7KHWKLUGWHUPLVDXWLOLW\WHUPGHSHQGLQJXSRQWKHQXPEHURIRQ QHWDQGRIIQHWFXVWRPHUVQLDQG UHVSHFWLYHO\HTXDOWRQM β⋅

3

Q NQL+ M

8

ZKHUH

β ≥DQGN∈ N βLVPHDVXULQJWKHQHWZRUNH[WHUQDOLW\)RUβ =FRQVXPHUVDUH LQGLIIHUHQWZLWKWKHUHVSHFWWRWKHVL]HRIWKHWZRQHWZRUNV7KHSDUDPHWHUNFDQEH LQWHUSUHWHGDVDPHDVXUHRIWKHTXDOLW\RIWKHLQWHUFRQQHFWDUUDQJHPHQW:KHQWKH TXDOLW\RILQWHUFRQQHFWLRQHTXDOVXQLW\FXVWRPHUVDUHLQGLIIHUHQWDVWRWKHGLVWULEXWLRQ RIRIIQHWDQGRQQHWFXVWRPHUVVLQFHRQDQGRIIQHWWUDIILFKDYHLGHQWLFDOTXDOLW\

7KLVLVRSSRVHGWRDVLWXDWLRQZKHUHN7KHQDOORWKHUWKLQJVEHLQJHTXDOD FXVWRPHUZLOOSUHIHUDQHWZRUNZLWKPDQ\FXVWRPHUV:KHQN NWKHTXDOLW\HTXDOV WKHTXDOLW\DYDLODEOHYLDWKH,QWHUQHWWKHSXEOLFLQWHUFRQQHFWLRQSRLQWLQILJXUH ZKHUHDVN!NLPSOLHVWKDWWKHWZR,63VKDYHDJUHHGXSRQHVWDEOLVKLQJDQLQWHUFRQQHFW DUUDQJHPHQWWKHSULYDWHLQWHUFRQQHFWLRQSRLQWLQILJXUHZLWKVXSHULRUTXDOLW\7KH IRXUWKWHUPSLLVWKHSHUSHULRGSULFHFKDUJHGIRU,63VXEVFULSWLRQ7KHFXVWRPHUV¶

XWLOLW\IXQFWLRQVDUHDFFRUGLQJO\OLQHDULQFRQVXPSWLRQRIWKHQHWZRUNVHUYLFHDQG PRQH\

7KXVZHGRQRWFRQVLGHUDQ\IRUPIRUXVDJHEDVHGSULFLQJ$WILUVWJODQFHWKLVDVVXPSWLRQLVPRUH UHDOLVWLFIRULQWHUQHWFRQQHFWLYLW\LQWKH86ZKHUHIODWUDWHSULFLQJLVWKHQRUPIRUORFDODFFHVV +RZHYHUZHDUHDOVRREVHUYLQJIODWUDWHSULFLQJLQ(XURSHLQSDUWLFXODUIRUEURDGEDQGLQWHUQHW FRQQHFWLYLW\)RUDGLVFXVVLRQRIWKHXVDJHEDVHGUHJLPHLQ(XURSHUHODWHGWR,QWHUQHWDFFHVVVHHHJ

&DYHDQG&URZWKHU

(10)

:HPDNHWKHIROORZLQJWZRDVVXPSWLRQV

$VVXPSWLRQ

:HDVVXPHWKDWHDFKRIWKHFXVWRPHUVDORQJWKHLQWHUYDO YDOXHWKHSURGXFWV VXIILFLHQWO\KLJKVXFKWKDWWKH\DOZD\VSUHIHUWRVXEVFULEHWRRQHRUWKHRWKHUQHWZRUN 7KXVWKHIL[HGDGYDQWDJHYLRIEHLQJFRQQHFWHGWRHLWKHUQHWZRUNLVVXIILFLHQWO\ODUJH

$VVXPSWLRQ

7KHUHH[LVWRQHFXVWRPHULQPDUNHWHTXLOLEULXPORFDWHGDW[ZKHUH[ZKRLV LQGLIIHUHQWEHWZHHQFRQVXPLQJWKHQHWZRUNVHUYLFHIURPWKHWZRILUPV7KXVWKH YDOXDWLRQGLIIHUHQWLDOθLEHWZHHQSURGXFWVRIWKHWZRILUPVLVVXIILFLHQWO\ORZVXFK WKDWθL

2

W−β

1 6

N

7

:HZLOOODWHUGHPRQVWUDWHWKDWDVVXPSWLRQLQGHHGLVQHFHVVDU\WRREWDLQDVKDUHG PDUNHWHTXLOLEULXP1RWLFHLQSDUWLFXODUWKDWDVVXPSWLRQLPSOLHVWKDWW

1 6

N ,I WKLVSURSHUW\LVYLRODWHGHTXLOLEULXPFDQEHFKDUDFWHUL]HGE\FRUQHULQJHYHQLQ

³V\PPHWULF´FDVHVZLWKθL =DQGSL = SMEHFDXVHWKHQHWZRUNH[WHUQDOLW\LV GRPLQDWLQJWKHWUDQVSRUWDWLRQFRVW

:HGHILQHαLDVWKHPDUNHWVKDUHRIILUPL$VVXPSWLRQDQGDUHWKHQLPSO\LQJWKDW QLLQM = − αL)RUDJLYHQSULFHYHFWRUWKHORFDWLRQRISUHIHUHQFHV[

1 6

IRU WKHFRQVXPHUVDWLVI\LQJ8D =8ELVGHWHUPLQLQJWKHPDUNHWVKDUHV%\GHILQLQJ

σ ≡

3 2

W−β

1 6

N

7 8

ZHFDQZULWHWKHPDUNHWVKDUHVRIILUPL αL= + σθ σLS SLM

$VVXPHWKDWDOPRVWDOOFXVWRPHUVDORQJWKHXQLWOLQHIRUVRPHUHDVRQDUHFRQQHFWHGWRVXSSOLHUD 7KHPDUJLQDOFXVWRPHUZLWKWKHORQJHVWGLVWDQFHWRWUDYHOWRVXSSOLHUDZLOOFRPSDUHWKHRIIHUIURPWKH WZRVXSSOLHUVDQGKHZLOOFKRRVHVXSSOLHUDDQGWKHPDUNHWZLOODFFRUGLQJO\EHFKDUDFWHULVHGE\

FRUQHULQJLIβN±W!βN7KXVW!β±NLVUXOLQJRXWWKHSRVVLELOLW\RIPDUNHWFRUQHULQJ LQVXFKV\PPHWULFFDVHV

(11)

σLVDIXQFWLRQRINZKHUHσ N >σ = Wσ N <1RWLFHWKDWDVVXPSWLRQ DVVXUHVWKDWσ!7KHPDUNHWVKDUHIXQFWLRQVDUHYHU\VLPLODUWRWKHPDUNHWVKDUH IXQFWLRQVLQDVWDQGDUG+RWHOOLQJPRGHODQGLIN DQGRUβ WKHH[SUHVVLRQIRU PDUNHWVKDUHVDUHLGHQWLFDOWRZKDWZHREWDLQLQDVWDQGDUG+RWHOOLQJPRGHOZLWKXQLW GHPDQGLHDPRGHOZLWKRXWQHWZRUNH[WHUQDOLWLHV,QWKHVWDQGDUG+RWHOOLQJPRGHO WKHSDUDPHWHUσLVLQWHUSUHWHGDVDPHDVXUHRISURGXFWVXEVWLWXWDELOLW\7KHSURGXFWV EHFRPHFORVHUVXEVWLWXWHVLIWKHWUDQVSRUWDWLRQFRVWWEHWZHHQWKHWZRSURGXFWVLV UHGXFHG)URPRXUGHILQLWLRQRIσLWDOVRIROORZVWKDWWKHSURGXFWVEHFRPHFORVHU VXEVWLWXWHVLQWKHH\HVRIWKHFRQVXPHUVLIWKHTXDOLW\RIWKHOLQNEHWZHHQWKHWZR QHWZRUNVLVUHGXFHG:HFDQDFFRUGLQJO\H[SHFWWKDWDQLQFUHDVHLQWKHFRVWRI WUDQVSRUWDQGDQLQFUHDVHLQWKHTXDOLW\RIWKHOLQNEHWZHHQWKHWZRQHWZRUNVWRKDYH VLPLODUHIIHFWVXSRQSULFHVDQGSURILWV

7KHWZRVWDJHJDPH

:HDUHFRQVLGHULQJDWZRVWDJHJDPH,QWKHILUVWVWDJHWKHWZR,63VVHWWKH LQWHUFRQQHFWLRQTXDOLW\NVXFKWKDW N N≤ ≤,QWKHVHFRQGVWDJHWKHWZR,63 VLPXOWDQHRXVO\VHWWKHLUSULFHVIRUDJLYHQN

Stage 2

,QVWDJHWKHILUPVVHWWKHLUSULFHVVLPXOWDQHRXVO\DQGILUPLLVFKRRVLQJSLVRDVWR PD[LPL]HSURILWVJLYHQE\

πL =

1 6 1 6

S FL− αL = S FL

+σθ σL

3

S SLM

8

&RPELQLQJWKHILUVWRUGHUFRQGLWLRQVIRUILUPLDQGM\LHOGV SL = + L +F

σ

θ DQGα σθ

L = + L

:HZLOOKDYHDVKDUHGPDUNHWHTXLOLEULXPLIDQGRQO\LIαL

1 6

ZKLFKLVVDWLVILHG XQGHUDVVXPSWLRQ

(12)

,QVHUWLQJHTXLOLEULXPSULFHVDQGPDUNHWVKDUHVDVZHOODVWKHGHILQLWLRQRIσLQWKH SURILWIXQFWLRQDQGUHDUUDQJLQJ\LHOGV

π θ β θ θ

β

L N W N L L

W N

1 6 2 1 6 7

2 1 6 7

= − −

+ +

− −

:KHQN DQGRUβ WKLVSURILWIXQFWLRQLVLGHQWLFDOWRWKHRQHZHREWDLQLQD FRQYHQWLRQDO+RWHOOLQJPRGHOZLWKXQLWGHPDQG

Stage 1

$WVWDJHRIWKHJDPHWKHWZRILUPVGHFLGHZKHWKHUWRVHWXSDQLQWHUFRQQHFW DUUDQJHPHQWRUQRW$VDOUHDG\VWDWHGVWDJHSURILWLVDIXQFWLRQRIWKHTXDOLW\RI LQWHUFRQQHFWLRQ'LUHFWGLIIHUHQWLDWLRQRIWKHSURILWIXQFWLRQZLWKUHVSHFWWRN

\LHOGV

∂ = −

− −

π θ β θ

β

L N L

N W N

1 6

2 1 6 7

%\GHILQLWLRQZHKDYHθM = −θLDQGWKXVZHJHW

∂ = ∂

∂ ∀

πL πM

N N N

:HUHDGLO\VHHWKDWWKHILUPVGRQRWKDYHFRQIOLFWLQJLQWHUHVWVZLWKUHVSHFWWRQHWZRUN FRPSDWLELOLW\LPSO\LQJWKDWWKHWZRILUPVDOZD\VDJUHHXSRQWKHRSWLPDO

LQWHUFRQQHFWLRQTXDOLW\OHYHON&RQVHTXHQWO\WKHUHLVQRQHHGIRUDQDVVXPSWLRQ HQVXULQJWKDWWKHILUPZLWKWKHORZHVWLQFHQWLYHVIRUTXDOLW\KDVDYHWRLQVHWWLQJN 7KHFRQGLWLRQIRUKDYLQJDVKDUHGPDUNHWHTXLOLEULXPLVθL

2

W−β

1 6

N

7

DVVXPSWLRQ7KLVFRQGLWLRQLPSOLHVWKDWWKHODUJHEUDFNHWDERYHLVSRVLWLYH7KXV LQDQ\VKDUHGPDUNHWHTXLOLEULXPSURILWVRIERWKILUPVLQFUHDVHLQLQWHUFRQQHFW TXDOLW\

(13)

7KHHIIHFWXSRQSURILWVIURPFKDQJLQJLQWHUFRQQHFWLRQTXDOLW\FDQEHGHFRPSRVHG LQWRDSULFHDQGDPDUNHWVKDUHRUYROXPHHIIHFWE\GLIIHUHQWLDWLQJπLL

1 6

S FL

∂ = ∂

∂ − + ∂

π α α

N N S F S

L L NL

1 6

7KHILUVWWHUPLVWKHPDUNHWVKDUHHIIHFWDQGWKHVHFRQGWHUPLVWKHSULFHHIIHFW%\

LQVHUWLQJWKHGHILQLWLRQRIσLQWKHHTXLOLEULXPSULFHDQGGLIIHUHQWLDWLQJZLWKUHVSHFWWR NZHREWDLQSNL =β7KHSULFHHIIHFWLVDFFRUGLQJO\SRVLWLYHIRUERWKILUPV7KLVLV RSSRVHGWRWKHPDUNHWVKDUHHIIHFW:KHQθL ≠PDUNHWVKDUHVDUHIXQFWLRQVRI LQWHUFRQQHFWTXDOLW\%\VXEVWLWXWLQJIRUσLQWKHHTXLOLEULXPPDUNHWVKDUHVDQG GLIIHUHQWLDWLQJZHREWDLQ

∂ = −

− −

α θ β

β

L L

N

2

W

1 6

N

7

7KHPDUNHWVKDUHHIIHFWLVSRVLWLYHIRUWKHILUPVHOOLQJWKHLQIHULRUVHUYLFHDQGWKXVLW LVQHJDWLYHIRUWKHILUPVHOOLQJWKHVXSHULRUVHUYLFH7KHQHJDWLYHPDUNHWVKDUHHIIHFW IRUWKHILUPVHOOLQJWKHVXSHULRUSURGXFWLVKRZHYHUGRPLQDWHGE\WKHSRVLWLYHSULFH HIIHFWDVGHPRQVWUDWHGDERYH

&RVWIUHHLQWHUFRQQHFWLRQTXDOLW\

$VVXPHLWLVFRVWOHVVWRLPSURYHWKHTXDOLW\RILQWHUFRQQHFW$VGHPRQVWUDWHGDERYH WKHGLIIHUHQWLDWHGSURILWIXQFWLRQLVHYHU\ZKHUHLQFUHDVLQJLQNIRUERWKILUPV7KXVWKH ILUPVKDYHQRLQFHQWLYHVWRGDPDJHWKHTXDOLW\RIWKHOLQNEHWZHHQWKHWZRQHWZRUNV DQGIXUWKHUPRUHLISRVVLEOHWKH\KDYHDPXWXDOLQWHUHVWLQLPSURYLQJWKHTXDOLW\RI WKLVOLQN7KHQERWKRQQHWDQGRIIQHWWUDIILFKDYHWKHVDPHTXDOLW\OHYHO

N N

3ULFHVDQGSURILWVLQFUHDVLQJLQWKHTXDOLW\RIWKHOLQNEHWZHHQWKHWZRQHWZRUNVDUH GXHWRWZRHIIHFWV)LUVWIRUJLYHQPDUNHWVKDUHVZLOOLQJQHVVWRSD\LVLQFUHDVLQJIURP

(14)

DOOFXVWRPHUVDVWKHTXDOLW\LVLQFUHDVHG6HFRQGZKHQWKHTXDOLW\RIWKHOLQNLV LQFUHDVHGWKHFRPSHWLWLRQEHWZHHQWKHWZRVXSSOLHUVEHFRPHVOHVVDJJUHVVLYH:KHQ FRPSDULQJWKHFRQYHQWLRQDO+RWHOOLQJPRGHOZLWKRXUPRGHOIHDWXULQJQHWZRUN H[WHUQDOLWLHVWKHDUJXPHQWFDQEHSXWWKHRWKHUZD\DURXQG:KHQWKHQHWZRUNVRIIHU OHVVWKDQSHUIHFWFRQQHFWLYLW\NWKHQWKHILUPVZLOOFRPSHWHPRUHDJJUHVVLYHO\

WKDQZKDWWKHFRQYHQWLRQDO+RWHOOLQJPRGHOSUHGLFWV

&RQYH[FRVWVRILQWHUFRQQHFWLRQTXDOLW\

7KHDVVXPSWLRQDERYHWKDWILUPVFDQLQFUHDVHLQWHUFRQQHFWLRQTXDOLW\ZLWKRXW

LQFXUULQJFRVWVLVFOHDUO\DQXQUHDOLVWLFDVVXPSWLRQVLQFHERWKURXWHUDQGWUDQVPLVVLRQ FDSDFLW\LVFRVWO\LQWKHPDUNHWSODFH)XUWKHUPRUHWKHUHZLOOEHWUDQVDFWLRQFRVWRI ZULWLQJDFRQWUDFWDQGWKHUHZLOOW\SLFDOO\EHFRVWVRIPXWXDOPRQLWRULQJ:HFDQWKXV DGGUHDOLVPWRRXUPRGHOE\WDNLQJLQWRDFFRXQWWKDWLQWHUFRQQHFWLRQLVFRVWO\7KHQ WKHVKDSHRIWKHLQWHUFRQQHFWLRQFRVWIXQFWLRQZLOODIIHFWWKHRSWLPDOVROXWLRQ$

QHFHVVDU\FRQGLWLRQIRUDQLQWHULRUVROXWLRQN

1 6

N LVWKDWWKHLQWHUFRQQHFWFRVW IXQFWLRQLVFRQYH[

2QHFDQDUJXHWKDWLWLVUHDVRQDEOHWRH[SHFWWKHLQWHUFRQQHFWLRQFRVWWREHFRQYH[

VLQFHDVLQWHUFRQQHFWTXDOLW\LQFUHDVHWKHFRPSOH[LW\RIWKHFRQWUDFWWKHWZRILUPV FDQZULWHEHFRPHVODUJH$VWKHTXDOLW\RILQWHUFRQQHFWLQFUHDVHWKHMRLQWQHWZRUNRI WKHWZRVXSSOLHUVEHFRPHPRUHOLNHDFRPPRQIDFLOLW\ZKHUHWKHILUPVKDYHDPSOH RSSRUWXQLWLHVRIRSSRUWXQLVWLFEHKDYLRU)LUPVZLOOW\SLFDOO\EHUHOXFWDQWWRDJUHH XSRQLQWHUFRQQHFWLRQXQOHVVWKHFRQWUDFWSURKLELWVRSSRUWXQLVWLFEHKDYLRU,QRUGHUWR

7KHEHVWUHVSRQVHIXQFWLRQV³UHDFWLRQIXQFWLRQV´LQVWDJHRIWKHJDPHLV

SL=5 S

3 8

M =

3

Wβ

1 6

− +N SM+ +θL F

8

$QLQFUHDVHLQNZLOOUHVXOWLQSDUDOOHOVKLIWVRXWZDUGVIRU WKHVHEHVWUHVSRQVHIXQFWLRQVDQGWKHILUPVGRHVLQGHHGEHFRPHOHVVDJJUHVVLYHDVWKHTXDOLW\RI LQWHUFRQQHFWLQFUHDVH:HFDQIXUWKHUPRUHVHH5¶ ZHDUHWKXVFRQVLGHULQJDVWDEOH1DVK HTXLOLEULXP

(15)

REVHUYHDQGYHULI\WKDWWKHFRQWUDFWLQGHHGLVIXOILOOHGFRVWO\PXWXDOPRQLWRULQJLV UHTXLUHG

,QWKHIROORZLQJZHZLOODVVXPHWKHFRVWRILQYHVWLQJLQLQWHUFRQQHFWTXDOLW\LQRUGHU WRLQFUHDVHWKHTXDOLW\RILQWHUFRQQHFWNDERYHNLV, , N=

1 6

ZKHUH, N

1 6

=

′ > ′′ >

, , OLP

N , N = ∞

1 6

DQG OLPN N , N

+

1 6

=$VVXPHQRZWKDWWKHWZRILUPVDUH IRUPLQJDQLQSXWMRLQWYHQWXUHZKHUHWKH\HTXDOO\VKDUHWKHFRVWRILQYHVWLQJLQ LQWHUFRQQHFWTXDOLW\(DFKILUPZLOOWKHQPD[LPL]HWKHVWDJHSURILWPLQXVWKHVKDUH RIWKHLQWHUFRQQHFWFRVWWKHILUPKDVWRSD\LQVWDJH7KXVWKHWZRILUPVZLOOVROYH LGHQWLFDORSWLPL]DWLRQSUREOHPVDQGDJUHHXSRQDLQWHUFRQQHFWTXDOLW\OHYHONG FKDUDFWHUL]HGE\

NG =DUJ PD[

2

π θL

1 6 1 6

N, N

7

7KXVWKHLQYHVWPHQWMRLQWYHQWXUHLQYHVWPHQWOHYHOLVFKDUDFWHUL]HGE\

′ = −

− −

, N W N

1 6

β

1

ββθL

6

)RUθL ≠WKHSURILWIXQFWLRQVDUHFRQYH[LQN:LWKRXUDVVXPSWLRQVZHKDYH

′ > ′

π

1 6 1 6

N , N DQGπ′ < ′

1 6 1 6

, 7KXVWKHUHH[LVWDWOHDVWRQHN∈NVDWLVI\LQJWKH ILUVWRUGHUFRQGLWLRQV)RUθL =WKHUHLVRQHDQGRQO\RQHNVDWLVI\LQJWKHILUVWRUGHU FRQGLWLRQ7KHVHFRQGRUGHUFRQGLWLRQVDUHVDWLVILHGDQGWKLVVROXWLRQLVLQGHHG RSWLPDO)RUθ ≠ZHFDQQRWUXOHRXWWKHSRVVLELOLW\WKDWWKHUHLVPRUHWKDQRQHN VDWLVI\LQJWKHILUVWRUGHUFRQGLWLRQ$VXIILFLHQWFRQGLWLRQIRUDVLQJOHXQLTXHVROXWLRQ LVWKDWWKHPDUJLQDOSURILWFXUYHDQGWKHPDUJLQDOLQYHVWPHQWFXUYHFURVVRQO\RQFH :HZLOOLQWKHIROORZLQJDVVXPHWKDWWKHPDUJLQDOFXUYHVFURVVRQO\RQFH

:HFDQFRPSDUHWKLVHTXLOLEULXPTXDOLW\OHYHOZLWKWKHVRFLDOO\RSWLPDOTXDOLW\7KH ILUVWEHVWLQWHUFRQQHFWTXDOLW\NLVGHILQHGDVWKHTXDOLW\OHYHOWKDWLVPD[LPL]LQJ FXVWRPHUJURVVVXUSOXVPLQXVWRWDOSURGXFWLRQFRVW&RQVLGHUIRUVLPSOLFLW\WKH PRGHOLQWKHDEVHQFHRIYHUWLFDOGLIIHUHQWLDWLRQLHθL =)LUVWEHVWLVWKHQ

(16)

HYLGHQWO\FKDUDFWHUL]HGE\VKDULQJFXVWRPHUVHYHQO\DPRQJWKHWZRILUPVVLQFHWKH XQLWFRVWRIVHUYLQJFXVWRPHUVLQWKHWZRILUPVDUHLGHQWLFDODQGFXVWRPHUVDUH GLVWULEXWHGXQLIRUPO\RQWKHLQWHUYDO7KHQDYHUDJHGLVWDQFHIURPWKHPRVWSUHIHUUHG EUDQGLV,QVHUWLQJWKLVDYHUDJHGLVWDQFHDVZHOODVWKHRSWLPDOPDUNHWVKDUHVLQ WKHXWLOLW\IXQFWLRQ\LHOGVWKHIROORZLQJZHOIDUHIXQFWLRQ

N =DUJ PD[YLW+ β⋅ + − −

1 6

N F , N

1 6

7KHILUVWEHVWLQYHVWPHQWOHYHOLVWKHQFKDUDFWHUL]HGE\

β = ′, N

1 6

7KLVLVLQFRQWUDVWWRWKHLQYHVWPHQWOHYHOLQWKHLQSXWMRLQWYHQWXUH,QWKHDEVHQFHRI YHUWLFDOGLIIHUHQWLDWLRQWKHRSWLPDOLQYHVWPHQWOHYHOIRUWKHLQSXWMRLQWYHQWXUHLV

β = ′, N

1 6

$QLQSXWMRLQWYHQWXUHZLOOWKXVFKRRVHDTXDOLW\OHYHORIWKHLQWHUFRQQHFW DUUDQJHPHQWH[FHHGLQJWKHVRFLDOO\RSWLPDOOHYHO,QWKHDSSHQGL[ZHGHPRQVWUDWH WKDWZHREWDLQDVLPLODURYHULQYHVWPHQWUHVXOWLQWKHPRGHOXQGHUYHUWLFDO

GLIIHUHQWLDWLRQDVZHOO7KHLQWXLWLRQEHKLQGWKHRYHULQYHVWPHQWUHVXOWLVWKH IROORZLQJ7KHUHDUHWZRHIIHFWVOHDGLQJWRWKHILUPV¶VWDJHSURILWVLQFUHDVLQJLQ LQWHUFRQQHFWTXDOLW\7KHILUVWHIIHFWLVWKDWIRUJLYHQPDUNHWVKDUHVZLOOLQJQHVVWRSD\

LVLQFUHDVLQJIURPDOOFXVWRPHUVDVWKHTXDOLW\LVLQFUHDVHG7KHVHFRQGHIIHFWLVWKDW ZKHQWKHTXDOLW\RIWKHOLQNLVLQFUHDVHGWKHFRPSHWLWLRQEHWZHHQWKHWZRVXSSOLHUV EHFRPHVOHVVDJJUHVVLYH2QO\WKHILUVWHIIHFWLVDVRFLDOJDLQ7KXVWKHLQSXWMRLQW YHQWXUHLVRYHULQYHVWLQJLQLQWHUFRQQHFWTXDOLW\LQRUGHUWRUHGXFHWKHVWDJH FRPSHWLWLYHSUHVVXUH

9&RQFOXVLRQ

,QWKLVSDSHUZHKDYHFRQVLGHUHGWKHLQFHQWLYHVIRUDQ,QWHUQHW6HUYLFH3URYLGHU,63 WRVWUDWHJLFDOO\GHJUDGHWKHLQWHUFRQQHFWLRQTXDOLW\ZLWKWKHFRPSHWLWRUV:HKDYH PRGHOHGWKLVLQDJDPHZKHUHWZRILUPVFKRRVHWKHTXDOLW\RILQWHUFRQQHFWLRQEHIRUH

(17)

WKH\FRPSHWHRYHUPDUNHWVKDUHViOD+RWHOOLQJ,QWKHFDVHZKHUHWKHUHLVQRYHUWLFDO GLIIHUHQWLDWLRQWKHILUPVVSOLWWKHPDUNHWHTXDOO\DQGWKH\KDYHQRLQFHQWLYHVWR GHJUDGHLQWHUFRQQHFWLRQTXDOLW\0RUHRYHUZKHQLQWHUFRQQHFWLRQLVFRVWO\WKHILUPV ZLOORYHULQYHVWLQLQWHUFRQQHFWLRQTXDOLW\DVFRPSDUHGWRWKHILUVWEHVWTXDOLW\OHYHO :HKDYHDOVRGHPRQVWUDWHGWKDWLIWKHSURGXFWVIURPWKHWZRILUPVDOVRDUHYHUWLFDOO\

GLIIHUHQWLDWHGWKHQWKHILUPSURYLGLQJWKHVXSHULRUSURGXFWZLOOKDYHWKHODUJHUPDUNHW VKDUH:KHQWKHQHFHVVDU\FRQGLWLRQVIRUDVKDUHGPDUNHWHTXLOLEULXPLVIXOILOOHGWKH ILUPVZLOODJUHHXSRQWKHRSWLPDOLQWHUFRQQHFWLRQTXDOLW\)XUWKHUPRUHLI

LQWHUFRQQHFWLRQTXDOLW\LVFRVWO\WKHILUPVZLOODJUHHXSRQDTXDOLW\RILQWHUFRQQHFW H[FHHGLQJWKHZHOIDUHPD[LPL]LQJTXDOLW\OHYHO

)LQDOO\LWLVQRWVWUDLJKWIRUZDUGWRFRPSDUHWKHPRGHOUHVXOWVZLWKWKHLQWHUFRQQHFWLRQ SROLF\LQWKHPDUNHWSODFHGXHWRWKHQRQGLVFORVXUHSROLF\5HSUHVHQWDWLYHVLQWKH LQGXVWU\GRKRZHYHUPDNHVWDWHPHQWVLQGLFDWLQJWKDWFRPSHWLQJ,63VGRLQWHUFRQQHFW LQFDVHVZKHUHWKHWZRILUPVLQTXHVWLRQDUHVXIILFLHQWO\V\PPHWULF6XFK

REVHUYDWLRQVDUHOHQGLQJVXSSRUWWRWKHUHVXOWVRIWKHSUHVHQWSDSHU

(18)

Appendix Welfare maximizing interconnect investments

&RQVXPHUVZLWKSUHIHUHQFHVWRWKHOHIWRIVRPHSRLQWαMRLQQHWZRUND6LQFHWKHLQGLYLGXDOWUDQVSRUW FRVWLVW[DQGWKHGLVWULEXWLRQRIFRQVXPHUVLVXQLIRUPDORQJWKHOLQHWKHVXPRIWUDYHOOLQJFRVWVIRUDOO FRQVXPHUVMRLQLQJWKHQHWZRUNVDUHαWDQG

1 6

α WIRUQHWZRUNDDQGEUHVSHFWLYHO\,QVWDJH RIWKHJDPHWKHVRFLDOZHOIDUHIXQFWLRQLV

: N

1 6

=PD[α α

>

YDα β αW+

2

+N

1 6

α

7

− + −F

C 1 6

α

<

YE

1 6 1

α W+β − +α Nα

6

F

A

7KHZHOIDUHPD[LPL]LQJPDUNHWVKDUHαLVWKXV

α θ

β

= +

D

W

1 6

N

2 7

,WFDQEHVKRZQWKDWWKHPDUNHWVKDUHRIWKHILUPVHOOLQJWKHVXSHULRUSURGXFWZLOOEHWRVPDOOLQPDUNHW HTXLOLEULXPDVFRPSDUHGWRWKHZHOIDUHPD[LPLVLQJPDUNHWVKDUH,QVSHFLDOFDVHVWKHZHOIDUH

PD[LPLVLQJVROXWLRQLVWROHWWKHILUPVHOOLQJWKHVXSHULRUSURGXFWVHUYHWKHHQWLUHPDUNHWZKHUHDVERWK ILUPVDUHDFWLYHLQWKHPDUNHWHTXLOLEULXP1RWLFHWKDWWKLVUHVXOWVQRWLVVSHFLILFWRRXUPRGHOIHDWXULQJ QHWZRUNH[WHUQDOLWLHV:LWKWKHSDUDPHWHUYDOXHβ WKHPRGHOGRHVQRWH[KLELWQHWZRUNH[WHUQDOLWLHV DQGWKXVWKHUHLVQRHIIHFWXSRQXWLOLW\E\LPSURYLQJLQWHUFRQQHFWTXDOLW\7KHQWKHZHOIDUH

PD[LPLVLQJPDUNHWVKDUHLVα= + θDWZKHUHDVPDUNHWHTXLOLEULXPLVFKDUDFWHULVHGE\

α= + θDW7KXVWKHPDUNHWVKDUHRIWKHILUPVHOOLQJWKHVXSHULRUSURGXFWLVWRVPDOO 7KHVWDJHVRFLDOO\RSWLPDOLQYHVWPHQWOHYHOLV

N : N , N

: ,

=DUJ PD[

′ = ′

2 1 6 1 6 7

)R&

%\DSSO\LQJWKHHQYHORSHWKHRUHPRQ:N

βα α βα α β βθ

β :

N D E W N

= = = − D

3 8

2 1 6

7

,QFDVHVZKHUHWKHZHOIDUHPD[LPL]LQJQHWZRUNLVFKDUDFWHUL]HGE\PDUNHWVKDULQJWKHIROORZLQJ FRQGLWLRQLVIXOILOOHGW β

1 6

N >θD %RWKWKHQXPHUDWRUDQGGHQRPLQDWRUDUHWKHQSRVLWLYHDQGLQ VXFKFDVHVZHOIDUHLVHYHU\ZKHUHLQFUHDVLQJLQLQWHUFRQQHFWTXDOLW\7KHZHOIDUHPD[LPL]LQJ

LQWHUFRQQHFWTXDOLW\LVIRXQGE\VROYLQJN=DUJ PD[

2

: N

1 6 1 6

, N

7

7KHILUVWRUGHUFRQGLWLRQLV DFFRUGLQJO\

β βθ

β :

N , N

W D N , N

− ′ = ⇔ −

= ′

1 6

2 1 6 7 1 6

7KHLQSXWMRLQWYHQWXUHZLOODFFRUGLQJO\RYHULQYHVWLQLQWHUFRQQHFWTXDOLW\ZKHQ

(19)

β βθ β

β βθ

β β βθ

β β

> −

⇔ +

>

L D

W N W N L W N W N

1 6 2 1 6 7 2 1 6 7 1 6

$VXIILFLHQWFRQGLWLRQLVWKHQWKDWWKHODUJHEUDFNHWLVSRVLWLYH7KLVLVWKHFDVHVLQFH

W N W N

W W N N W W N N N

W N W N N

<

< − + = − − +

< − + +

+ +

β β

β β β β β

β β β

1 6

2 7 1 6

1 6 1 6 1 6 1 6 1 6

1 6

2 7 2 1 6 7 1 6

1442443 1 24 43

,WLVRQO\VRFLDOO\RSWLPDOWRVHWXSDGLUHFWOLQNEHWZHHQWKHWZRQHWZRUNVLIERWKQHWZRUNVKDYHD SRVLWLYHPDUNHWVKDUHWKLVLVWKHFDVHZKHQ

2

W β

1 6

N

7

>θD 7KXVWKHILUVWEUDFNHWKDVWREH SRVLWLYH$QLQSXWMRLQWYHQWXUHZLOODFFRUGLQJO\RYHULQYHVWLQLQWHUFRQQHFWTXDOLW\XQGHUSURGXFW GLIIHUHQWLDWLRQDVZHOODVLQWKHDEVHQFHRIYHUWLFDOGLIIHUHQWLDWLRQ

(20)

5HIHUHQFHV

$UPVWURQJ01HWZRUNLQWHUFRQQHFWLRQLQWHOHFRPPXQLFDWLRQV7KH(FRQRPLF -RXUQDO±

%DLOH\-DQG/0F.QLJKW6FDODEOH,QWHUQHW,QWHUFRQQHFWLRQ$JUHHPHQWVDQG ,QWHJUDWHG6HUYLFHVLQ.DKLQ%DQG-+.HOOVHUHGV&RRUGLQDWLQJWKH,QWHUQHW 7KH0,73UHVV&DPEULGJH0DVVDFKXVHWWV

%DDNH3DQG7:LFKPDQQ2QWKH(FRQRPLFVRI,QWHUQHW3HHULQJ1HWQRPLFV

&DYH0DQG3&URZWKHU&DOO2ULJLQDWLRQDQG7HUPLQDWLRQ&KDUJHVIRU

$FFHVVLQJWKH,QWHUQHW,QWHUQDWLRQDO-RXUQDORI&RPPXQLFDWLRQV/DZDQG3ROLF\

,VVXH:LQWHU

&DZOH\5$,QWHUFRQQHFWLRQ3ULFLQJDQG6HWWOHPHQWV6RPH+HDOWK\-RVWLQJ LQWKH*URZWKRI,QWHUQHWLQ.DKLQ%DQG-+.HOOVHUHGV&RRUGLQDWLQJWKH ,QWHUQHW7KH0,73UHVV&DPEULGJH0DVVDFKXVHWWV

&KLQR\%DQG7-6ROR,QWHUQHW([FKDQJHV3ROLF\'ULYHQ(YROXWLRQLQ .DKLQ%DQG-+.HOOVHUHGV&RRUGLQDWLQJWKH,QWHUQHW7KH0,73UHVV

&DPEULGJH0DVVDFKXVHWWV

&KRL6<'26WDKODQG$%:KLQVWRQ7KH(FRQRPLFVRI(OHFWURQLF

&RPPHUFH0DFPLOODQ7HFKQLFDO3XEOLVKLQJ86$

&UHPHU - 3 5H\ DQG - 7LUROH &RQQHFWLYLW\ LQ WKH &RPPHUFLDO ,QWHUQHW -RXUQDORI,QGXVWULDO(FRQRPLFV;/9,,,

'DQJ1JX\HQ*DQG73HQDUG,QWHUFRQQHFWLRQEHWZHHQ,63V&DSDFLW\

&RQVWUDLQWVDQG9HUWLFDO'LIIHUHQWLDWLRQ3DSHUSUHVHQWHGDWWKHQG%HUOLQ,QWHUQHW :RUNVKRS0D\

(21)

(UJDV+,QWHUQHW3HHULQJ$&DVH6WXG\RIWKH$&&&¶V8VHRILWV3RZHUV 8QGHU3DUW;,%RIWKH7UDGH3UDFWLFHV$FW3DSHUSUHVHQWHGDWWKHUG%HUOLQ ,QWHUQHW:RUNVKRS0D\DYDLODEOHDWZZZEHUOHFRQGHLHZ

*DUHLVV57KH2OG%R\V¶1HWZRUN'DWD&RPPXQLFDWLRQV2FWREHU

*LEERQV550DVRQDQG56WHLQEHUJ,QWHUQHW6HUYLFH&ODVVHVXQGHU

&RPSHWLWLRQIRUWFRPLQJ,(((-RXUQDORI6HOHFWHG$UHDVLQ&RPPXQLFDWLRQV DYDLODEOHDWZZZVRWRQDFXNaUDP

.DW]0DQG&6KDSLUR1HWZRUN([WHUQDOLWLHV&RPSHWLWLRQDQG

&RPSDWLELOLW\$PHULFDQ(FRQRPLF5HYLHZ

.HQGH07KH'LJLWDO+DQGVKDNH&RQQHFWLQJ,QWHUQHW%DFNERQHV233 :RUNLQJ3DSHU1R)&&

/DIIRQW-DQG-7LUROH&RPSHWLWLRQLQ7HOHFRPPXQLFDWLRQV7KH0,73UHVV

&DPEULGJH0DVVDFKXVHWWV

/DIIRQW-35H\DQG-7LUROHD1HWZRUN&RPSHWLWLRQ,2YHUYLHZDQG 1RQGLVFULPLQDWRU\3ULFLQJ5DQG-RXUQDORI(FRQRPLFV

/DIIRQW-35H\DQG-7LUROHE1HWZRUN&RPSHWLWLRQ,,3ULFH'LVFULPLQDWLRQ 5DQG-RXUQDORI(FRQRPLFV

/LWWOH,(5DOSK7:DUUDQDQG-:ULJKW:HOIDUH$QDO\VLVRI,QWHUQDWLRQDO DQG'RPHVWLF0DUNHWVIRU,QWHUQHW$FFHVV3DSHUSUHVHQWHGDWWKHUG%HUOLQ,QWHUQHW :RUNVKRS0D\DYDLODEOHDWZZZEHUOHFRQGHLHZ

0DVRQ56LPSOH&RPSHWLWLYH,QWHUQHW3ULFLQJ(XURSHDQ(FRQRPLF5HYLHZ

0DVRQ5&RPSDWLELOLW\EHWZHHQ'LIIHUHQWLDWHGILUPVZLWK1HWZRUN(IIHFWV 'LVFXVVLRQ3DSHUQR8QLYHUVLW\RI6RXWKDPSWRQDYDLODEOHDW

ZZZVRWRQDFXNaUDP

0XHOOHU0-<+XLDQG&&KHQJ7KH+RQJ.RQJ([FKDQJH7KH

(FRQRPLFV(YROXWLRQDQG&RQQHFWLYLW\RI$VLDQ,QWHUQHW,QIUDVWUXFWXUHLQ.DKLQ

(22)

%DQG-+.HOOVHUHGV&RRUGLQDWLQJWKH,QWHUQHW7KH0,73UHVV&DPEULGJH 0DVVDFKXVHWWV

5RKOIV-$7KHRU\RI,QGHSHQGHQW'HPDQGIRU&RPPXQLFDWLRQV6HUYLFH%HOO -RXUQDORI(FRQRPLFV

6KDSLUR&DQG+9DULDQ,QIRUPDWLRQ5XOHV$6WUDWHJLF*XLGHWRWKH1HWZRUN (FRQRP\+DUYDUG%XVLQHVV6FKRRO3UHVV%RVWRQ0DVVDFKXVHWWV

Referanser

RELATERTE DOKUMENTER

If the vertically integrated firm's retail subsidiary has the highest ability to offer value-added services when the input quality is improved, the rival will always be foreclosed by

In this study we investigate whether competition among providers can lead to a reduction in quality when providers compete on both quality and price. We do so in a

For instance, there is little reason to upgrade local access to handle broadband applications if the quality of the regional and global backbones implies that the speed of

Key factors for creating Buying Centers include making decisions and assessment on product groups and industry groups (Service-Producers and Service-Providers), complexity

How do young service users with mental health problems experience the everyday relationship with service providers, and what kind of institutional logics and practices complicate

Services are often co-produced by different service providers and (perhaps) with multiple customers. For this reason, the service environment can be viewed as a service

Service providers in developing countries, who are not accessible on the Internet, are dependent on intermediaries to provide information and bundle their tourist product

The possibility to give feed- back and voicing dissatisfaction to service providers (voice) is a well-established channel of service users' influence, however it is