Unbundling and infrastructure competition for broadband adoption: Implications for NGA regulation

The common idea of open access policy is that it refers to the sharing of particular elements, such as wholesale access networks, backhaul, under-sea cable and internet exchange points in fixed and mobile networks. In broadband networks, the use of open access policy usually refers to the infrastructure parts, which are considered a bottleneck. Many regulators have generally focused open access policy on fixed broadband networks, especially digital subscriber line (DSL) technology, in the last decade. Local loop unbundling (LLU) regulation is one of the main strategies for the regulator to open access to an incumbent’s bottleneck network in order to soften its monopoly power and encourage competition in the DSL broadband market. The OECD countries have different strategies regarding unbundling local loop and infrastructure competition, as the characteristics and infrastructure networks of countries vary. There are currently more choices of next generation network (NGN) technologies to develop. While local loop unbundling may not be applied fully to NGN development (the cost is not sunk, more technologies are available to implement, incentive of investment by operator), it can indicate benefits and drawbacks of open access policy in the past decade that can be adapted to NGN.The empirical results of this study show that during 2002–2008, LLU regulation was one of the strategies used to increase broadband adoption in countries that had difficulty encouraging infrastructure competition. Unbundling regulation can therefore be implemented carefully and differently in each country that has inefficiency that is harmful to consumers in its market from a monopoly incumbent. Infrastructure competition, on the other hand, is introduced as another strategy to increase broadband adoption. The empirical results of this study indicate that infrastructure competition can be used as a strategy when there are already enough infrastructures in the area or country. These results support the idea of using open access and infrastructure competition policy depending on the existing competition of broadband infrastructure in each country.     

Dynamic pricing models for ERP systems under network externality

Enterprise Resource Planning (ERP) systems vendors face great challenges to enhance their market position and maximize their profits. Being able to simultaneously predict the diffusion of an ERP and to determine the right price to charge to a customer is a complex task. Earlier work has demonstrated evidence of network effect in the diffusion of ERP software in industries. In light of this evidence, we investigate in this paper the benefit of a dynamic pricing strategy for ERP systems vendors in a business network governed by a quantitative diffusion model. Based on a real scenario in the automotive industry, those quantitative models are integrated into a simulation-based optimization approach to tackle the problem. Our findings are promising and establish the foundation of a powerful decision support tool for ERP systems vendors.     

欧洲主要国家药品定价和补偿制度的比较分析

通过比较分析的方法深入探讨欧洲各主要国家药品定价和补偿制度的特点以及经济学评价的应用情况。如何评价新药的创新性已成为各国政府在规制药品市场时共同面临的关键性问题,而与创新水平评价密切相关的带有“双重定价”意味的定价体制值得我国政府在平衡控制药品费用和激发医药产业创新实力这一矛盾时借鉴学习。     

工程总承包商的内部转移定价问题探讨

工程总承包是大型工程项目建设组织的一个重要发展方向,工程总承包商内部不同单位分别完成设计和施工工作,选择合适的转移定价策略对于项目运作效率和项目优化设计实现程度具有十分重要的意义。论文通过介绍转移定价理论,并分析工程总承包商的结构类型和行业特点,重点讨论了不考虑税收因素的工程总承包商内部转移定价,并在此基础上讨论了基于税务筹划的工程总承包商转移定价,提出工程总承包商应采用成本加收益分成的转移定价方法。     

Optimal pricing and advertising strategy for introducing a new business product with threat of competitive entry

The problem of optimal joint pricing and advertising decision making for a new product facing potential competitive entry has received inadequate attention. We propose a model that attempts to find the optimal price-advertising frontier in the face of potential competitive entry that maximizes total discounted profits for pre- and post-entry periods. We find that a firm would charge the price that equates price elasticity to marginal revenue product of advertising (as predicted by [Dorfman, R. and Steiner, P.O. (1954), Optimal Advertising and Optimal Quality, American Economic Review, 44(5), 826-836.]) only when the potential effects of pricing and advertising on its market share are not considered. Under optimal conditions, aware that market share is subject to erosion, the firm charges a somewhat lower price than the profit maximizing price, and sets an advertisement expense that is somewhat higher than the profit-maximizing advertising level as predicted by Cournot's monopolistic setting. We illustrate the applicability of our model using business product examples taken from several industries including operating systems, software, pharmaceutical, and telephone switching. Directions for future research with implications for B2B managers (for example, the possible effects of preannouncement to forestall competitive entry) are discussed.     

Financial planning issues concerning funding, pricing and organization of corporate R&D activity: A case study

This paper is a case study of financial planning issues concerning funding, pricing, and the organization of corporate research and development (R&D) activity faced by American Telephone and Telegraph Company (AT&T) after the break up of the Bell System. The paper concludes that from the standpoint of financial planning, and in the context of firms similar to AT&T, a variant of the predivestiture model, rather than a profit centre model or a market model, appears to be the most efficient way of funding, pricing and organizing corporate R&D activity.     

An integrated product planning model for pricing and bundle selection using Markov decision processes and data envelope analysis

When bundling products during the product planning stage, there are a number of possible combinations that can be offered to customers. Consider a firm that offers N distinctive products, then there are 2^N−(N+1) possible bundling combinations. Now, if we wish to make pricing and bundle selection decisions, keeping in my mind limited inventory and a finite time horizon, then the size of the state space could be very large and finding an optimal solution could be impossible. To tackle this issue, we formulate an integrated model that utilizes a Markov decision process and data envelope analysis. Bundle selections are made using data envelope analysis in each decision epoch. Once the efficient bundles are selected they are priced by solving a Markov decision process using dynamic programming. Numerical examples are solved to exhibit the model's potential in solving real-world problems.     

Rural telephony since divestiture

This paper determines whether local rural telephone rates have increased as well as whether rural rates have increased more or less than other telephone rates since the divestiture of AT&T. Also, examined are long distance rates, penetration levels and subsidization in rural telephone markets in an attempt to ascertain whether universal service is in jeopardy in rural areas.The author would like to thank Erwin A. Blackstone, Gerald Faulhaber and Alfred E. Kahn for their helpful comments.