Browsing by Author "Haucap, Justus"

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Open Access
Regulating Gasoline Prices: Experimental Evidence' presented by Dr Prof Justus Haucap on 24 Jan 2013
(Te Herenga Waka—Victoria University of Wellington, 2013) Haucap, Justus
If retail gasoline prices are to be regulated, is it better to allow only one price increase per day (while price cuts are always possible) as in Austria, impose a maximum retailer mark-up as in Luxembourg , or allow only one daily price change (either up or down) as in Western Australia? Indeed, is price regulation the best way to increase consumer welfare in retail gasoline markets characterised by oligopoly market structures, frequent interactions, highly transparent prices, rather inelastic demand and collusive behaviour? A recent German inquiry backed suspicions of tacit collusion and suggested adoption of regulatory price rules for gas stations similar to those implemented in Austria, parts of Australia, Luxembourg or parts of Canada. Whilst intuition suggests the proposed rules will raise consumer welfare, theoretical evidence is mixed and empirical evidence rare. In this seminar, Justus Haucap discusses evidence obtained using an experimental gasoline market in a laboratory experiment which suggests that these rules tend to decrease rather than increase consumer welfare. Whilst no rule tends to induce lower retail prices, some rules are less harmful than others.
Open Access
Telecommunications in New Zealand: Regulating for Infrastructure Competition Reality, 12 July 2013
(Te Herenga Waka—Victoria University of Wellington, 2013) Howell, Bronwyn; Haucap, Justus; Nicholls, Rob; Glass, Hayden; Abbott, Chris
In February, Communications minister Amy Adams brought forward the planned review of the regulatory arrangements for New Zealand's telecommunications sector. The move was prompted by emerging tensions between the Commerce Commission's pursuit of its legislated objective to promote competition in the retail market for broadband connections to Chorus' copper network, and the government's objectives for rollout and take-up of its subsidised Ultra-Fast Broadband network. The regulatory review coincides with a review of the Telecommunications Service Obligation arrangements enabling certain telecommunications services to be available and affordable. The Ministry of Business, Innovation and Employment will shortly release discussion documents supporting these two reviews. ISCR invited telecommunications industry, policy, regulatory and academic stakeholders to participate in a forum to share international experience and stimulate debate and discussion to inform the review of New Zealand's telecommunications regulatory framework and Telecommunications Service Obligations currently taking place under Sections 101A nad 157AA of the Telecommunications Act (2001).