The Pricing of Inputs Sold to Competitors

By William J. Baumol, J. Sidak. 2001

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Regulation of Natural Monopoly (2007, background): “According to Willig (1979) the appropriate access price is given by a = p1−c1 or the difference between the incumbent’s retail price for long distance calls and the marginal or avoided cost of supplying these calls (see also Baumol and Sidak, 1994, Baumol, Ordover, and Willig, 1997).”
The theory of access pricing and interconnection (2001, background): “(73)See Carter and Wright (1994), Hakim and Lu (1993), Cave and Donnelly (1996), Yun, Choi, and Ahn (1997), section 6 of La¤ont, Rey, and Tirole (1998a), Box 5.1 in La¤ont and Tirole (2000), Domon and Kazuharu (1999), and Wright (1999b) for more analysis of the economics of international settlements”