Telephone Pricing to Promote Universal Service and Economic Freedom

摘要

The working paper examines the price effects of alternative competitive policies. Parts of it are based on technical economic models designed to clarify the expected actions of the various participants in the telecommunications industry. After an analysis of the demand, supply, and equilibrium conditions in the industry, the paper reaches technical conclusions. In applying the technical conclusions to policy issues, the paper concludes that it is possible to have a price structure compatible with both competition and universal service.