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EFFICIENT COMPONENT PRICING RULE [1 record]

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Record 1 2001-07-23

English

Subject field(s)
  • Economic Doctrines, Systems and Policies
  • Pricing Theory
  • Laws of the Market (Economy)
CONT

Economists have proposed ECPR for situations where a new entrant must gain entry to a bottleneck facility if it is to compete with the incumbent carrier. It originated in a regulatory context where the focus was on creating a level playing field on which the incumbent and the host could compete.

CONT

Telecom's approach is based on the "Efficient Component Pricing Rule" (ECPR) or Baumol-Willig rule, which requires full compensation of the monopoly carrier for profits lost as a result of entry.

Key term(s)
  • Baumol Willig rule

French

Domaine(s)
  • Doctrines, systèmes et politiques économiques
  • Théorie des prix
  • Lois du marché (Économie)
Key term(s)
  • règle Baumol-Willig
  • règle Baumol Willig

Spanish

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