Negotiating for Improved Interconnection: The Incentives to Bargain

摘要

The issue of determining the types and quality of interconnection between local telephone companies and other telecommunications firms is addressed. Instead of prescribing a detailed solution, a regulatory commission should establish ground rules for negotiations, i.e. market rules. It must also establish the starting point from which bargaining can take place. A starting point for negotiations is the a priori property rights vested in the bargaining parties.