Pub Date : 2023-06-01DOI: 10.1177/17835917231185877
Guenter Knieps
An important precondition for the development of artificial intelligence (AI) in network industries is the access to big data and the attendant necessities of data sharing and data portability. The goal of this paper is to analyze the changing needs of entrepreneurial decision-making to exhaust the innovation potential of AI-driven big data value chains taking into account AI-specific ethical, security and privacy regulations. The analytical concept of AI-powered big data virtual networks is investigated with a focus on the governance of 5G-based big data value chains required for Internet of Things (IoT) applications in particular smart networks. Although several actors may be involved—such as broadband providers, cloud service providers, geopositioning service providers, or sensor network service providers—the final responsibility for bundling these different service components lies in the hands of the AI-powered big data virtual network providers. In addition to the required data privacy and security regulations, the exploration of new liability rules for AI interacting with traditional technologies is becoming relevant, taking into account AI-specific ethical and transparency obligations. Firstly, the complementary roles of the EU data regulatory framework and European AI regulatory framework are examined. Secondly, the network economic concept of AI-powered big data virtual networks is elaborated taking into account the required regulations. Thirdly, the heterogeneity of AI systems—required for a variety of IoT applications—is considered, with a particular focus on the application of AI within the transportation sector.
{"title":"The Governance of Big Data and Artificial Intelligence in Network Industries","authors":"Guenter Knieps","doi":"10.1177/17835917231185877","DOIUrl":"https://doi.org/10.1177/17835917231185877","url":null,"abstract":"An important precondition for the development of artificial intelligence (AI) in network industries is the access to big data and the attendant necessities of data sharing and data portability. The goal of this paper is to analyze the changing needs of entrepreneurial decision-making to exhaust the innovation potential of AI-driven big data value chains taking into account AI-specific ethical, security and privacy regulations. The analytical concept of AI-powered big data virtual networks is investigated with a focus on the governance of 5G-based big data value chains required for Internet of Things (IoT) applications in particular smart networks. Although several actors may be involved—such as broadband providers, cloud service providers, geopositioning service providers, or sensor network service providers—the final responsibility for bundling these different service components lies in the hands of the AI-powered big data virtual network providers. In addition to the required data privacy and security regulations, the exploration of new liability rules for AI interacting with traditional technologies is becoming relevant, taking into account AI-specific ethical and transparency obligations. Firstly, the complementary roles of the EU data regulatory framework and European AI regulatory framework are examined. Secondly, the network economic concept of AI-powered big data virtual networks is elaborated taking into account the required regulations. Thirdly, the heterogeneity of AI systems—required for a variety of IoT applications—is considered, with a particular focus on the application of AI within the transportation sector.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"24 1","pages":"57 - 71"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42656707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-01DOI: 10.1177/17835917231180839
Roberto Cardinale
Agencies and analysts attribute the current volatility of natural gas prices to a temporary convergence of exogenous shocks such as the post-COVID-19 economic recovery and the conflict in Ukraine. This paper hypothesizes that long-term structural and policy factors endogenous to the energy sector also play a relevant role. Through a case study of three major gas markets – UK, US, and EU – the paper finds that countries characterized by abundant domestic production are less exposed to price volatility as they benefit from lower market uncertainty and asset specificity. This encourages energy firms to outsource production and rely on more flexible and shorter-term contracts. A structural condition of abundance supported by liberalization policies and a developed infrastructure network allows energy firms to easily switch suppliers or buyers without being exposed to the opportunistic behavior of the commercial counterparty, increasing market competition and reducing prices. By contrast, import-dependent countries face greater uncertainty and asset specificity, as supplies and prices are not guaranteed and they heavily depend from trends in international markets. In this context, the contractual and structural flexibility brought about by liberalization policies may expose to further insecurity of supply and volatility of prices, as exporters are contractually disengaged from commitments on volumes and prices. In periods of international scarcity, they may redirect supplies to importers that offer a premium in price. This suggests that import-dependent countries could reduce their exposure to price volatility (i) by increasing domestic production (ii) while envisaging the coexistence of contractual models based on both market competition and vertical integration, to take advantage from low spot prices in periods of international abundance and contain the surge in periods of scarcity.
{"title":"Liberalization and the volatility of gas prices: Exploring their relation in times of abundance and scarcity","authors":"Roberto Cardinale","doi":"10.1177/17835917231180839","DOIUrl":"https://doi.org/10.1177/17835917231180839","url":null,"abstract":"Agencies and analysts attribute the current volatility of natural gas prices to a temporary convergence of exogenous shocks such as the post-COVID-19 economic recovery and the conflict in Ukraine. This paper hypothesizes that long-term structural and policy factors endogenous to the energy sector also play a relevant role. Through a case study of three major gas markets – UK, US, and EU – the paper finds that countries characterized by abundant domestic production are less exposed to price volatility as they benefit from lower market uncertainty and asset specificity. This encourages energy firms to outsource production and rely on more flexible and shorter-term contracts. A structural condition of abundance supported by liberalization policies and a developed infrastructure network allows energy firms to easily switch suppliers or buyers without being exposed to the opportunistic behavior of the commercial counterparty, increasing market competition and reducing prices. By contrast, import-dependent countries face greater uncertainty and asset specificity, as supplies and prices are not guaranteed and they heavily depend from trends in international markets. In this context, the contractual and structural flexibility brought about by liberalization policies may expose to further insecurity of supply and volatility of prices, as exporters are contractually disengaged from commitments on volumes and prices. In periods of international scarcity, they may redirect supplies to importers that offer a premium in price. This suggests that import-dependent countries could reduce their exposure to price volatility (i) by increasing domestic production (ii) while envisaging the coexistence of contractual models based on both market competition and vertical integration, to take advantage from low spot prices in periods of international abundance and contain the surge in periods of scarcity.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"24 1","pages":"72 - 96"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43040053","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-04DOI: 10.1177/17835917231156099
M. Finger, Juan J. Montero
This article discusses the challenges posed to the traditional, physically delivered public services as a result of their digitalization, something that mainly concerns infrastructure public services in the transport, the energy, and the communications sectors. In addition, it assesses whether the digital interfaces that increasingly intermediate between the traditional, physical public services and the citizens also have public service features and, as a consequence, should be regulated accordingly. The article first clarifies the concept of public service in the context of the liberalization of the infrastructure sectors, sectors in which public services had come to play an important role over time. It then explains how to conceptualize digitalization and its effects on physical services providers by paying particular attention to the business model of the digital platforms. It furthermore examines how digitalization affects the traditional physical public services and whether the digital platforms in the concerned infrastructures could have public service features. In the concluding section it discusses remedies.
{"title":"Digitalizing infrastructure, digital platforms and public services","authors":"M. Finger, Juan J. Montero","doi":"10.1177/17835917231156099","DOIUrl":"https://doi.org/10.1177/17835917231156099","url":null,"abstract":"This article discusses the challenges posed to the traditional, physically delivered public services as a result of their digitalization, something that mainly concerns infrastructure public services in the transport, the energy, and the communications sectors. In addition, it assesses whether the digital interfaces that increasingly intermediate between the traditional, physical public services and the citizens also have public service features and, as a consequence, should be regulated accordingly. The article first clarifies the concept of public service in the context of the liberalization of the infrastructure sectors, sectors in which public services had come to play an important role over time. It then explains how to conceptualize digitalization and its effects on physical services providers by paying particular attention to the business model of the digital platforms. It furthermore examines how digitalization affects the traditional physical public services and whether the digital platforms in the concerned infrastructures could have public service features. In the concluding section it discusses remedies.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"24 1","pages":"40 - 53"},"PeriodicalIF":0.0,"publicationDate":"2023-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46169498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-29DOI: 10.1177/17835917231153063
Jakub Chini, Martin Kvizda, Ondřej Špetík
After an introduction of competition due to liberalisation, there is an expectation of lower prices and better quality. However, these overall positive effects could be also driven by the incumbent’s incentive to exclude competition within the liberalised markets. Such a situation occurred on the Prague-Ostrava line where liberalisation brought lower prices and an increase in quality. However, it also brought multiple accusations by both the Czech competition authority and the European Commission of the state-owned incumbent, České dráhy, that it had engaged in predatory pricing. This paper then assesses whether the price decreases within this line were driven by actual competition or by predatory behaviour of České dráhy by analysing the position of České dráhy. The aim of this paper therefore is to assess the real market power of the Czech state incumbent, České dráhy, on the Prague-Ostrava line. To achieve this aim, we used unique data we had gathered from our previous research (such as price development, market shares and customer behaviour). Our results then show that it is unlikely that České dráhy could have acted independently of its competitors and customers, which indicates that it could not have had a dominant position.
{"title":"What is the real power of incumbents? Case study on the Czech Republic","authors":"Jakub Chini, Martin Kvizda, Ondřej Špetík","doi":"10.1177/17835917231153063","DOIUrl":"https://doi.org/10.1177/17835917231153063","url":null,"abstract":"After an introduction of competition due to liberalisation, there is an expectation of lower prices and better quality. However, these overall positive effects could be also driven by the incumbent’s incentive to exclude competition within the liberalised markets. Such a situation occurred on the Prague-Ostrava line where liberalisation brought lower prices and an increase in quality. However, it also brought multiple accusations by both the Czech competition authority and the European Commission of the state-owned incumbent, České dráhy, that it had engaged in predatory pricing. This paper then assesses whether the price decreases within this line were driven by actual competition or by predatory behaviour of České dráhy by analysing the position of České dráhy. The aim of this paper therefore is to assess the real market power of the Czech state incumbent, České dráhy, on the Prague-Ostrava line. To achieve this aim, we used unique data we had gathered from our previous research (such as price development, market shares and customer behaviour). Our results then show that it is unlikely that České dráhy could have acted independently of its competitors and customers, which indicates that it could not have had a dominant position.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"24 1","pages":"24 - 39"},"PeriodicalIF":0.0,"publicationDate":"2023-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43850526","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-18DOI: 10.1177/17835917231152799
C. Ducuing, R. H. Reich
The circular economy (‘CE’) is a political goal to shift the economy towards a more circular and sustainable one. Data sharing shall close information gaps in the predominant economy and, hence, form the backbone of the transition to a CE. As part of the recent legislative proposals from the EC, “digital product passports” (‘DPPs’) are expected to constitute one-stop shops for such data and information delivery. The principal idea of DPPs is to provide product information to interested stakeholders within and outside the product value chain. However, many challenges arise with DPPs, in particular how to reconcile a broad (if no ‘open’) access to data while preserving the (legally protected) interests of certain actors, and the lack of trust concerning data use and quality between the actors. Our hypothesis are (i.) that such challenges are related to the absence of an appropriate (data) governance model for DPPs and (ii.) that data governance as a main concern within the data economy agenda could inform the regulation and operationalisation of DPPs. We analyse the – lack of - (data) governance of DPPs, both in the literature and in the recent legislative proposals from the EC. We find that data governance is significantly overlooked or considered only from a pure technological perspective (techno-solutionism), which is likely to jeopardise DPPs. As both a confirmation and a way forward, we establish connections to data governance as per the data economy agenda. In turn, the analysis of DPPs governance informs the general discussion on data governance.
{"title":"Data governance: Digital product passports as a case study","authors":"C. Ducuing, R. H. Reich","doi":"10.1177/17835917231152799","DOIUrl":"https://doi.org/10.1177/17835917231152799","url":null,"abstract":"The circular economy (‘CE’) is a political goal to shift the economy towards a more circular and sustainable one. Data sharing shall close information gaps in the predominant economy and, hence, form the backbone of the transition to a CE. As part of the recent legislative proposals from the EC, “digital product passports” (‘DPPs’) are expected to constitute one-stop shops for such data and information delivery. The principal idea of DPPs is to provide product information to interested stakeholders within and outside the product value chain. However, many challenges arise with DPPs, in particular how to reconcile a broad (if no ‘open’) access to data while preserving the (legally protected) interests of certain actors, and the lack of trust concerning data use and quality between the actors. Our hypothesis are (i.) that such challenges are related to the absence of an appropriate (data) governance model for DPPs and (ii.) that data governance as a main concern within the data economy agenda could inform the regulation and operationalisation of DPPs. We analyse the – lack of - (data) governance of DPPs, both in the literature and in the recent legislative proposals from the EC. We find that data governance is significantly overlooked or considered only from a pure technological perspective (techno-solutionism), which is likely to jeopardise DPPs. As both a confirmation and a way forward, we establish connections to data governance as per the data economy agenda. In turn, the analysis of DPPs governance informs the general discussion on data governance.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"24 1","pages":"3 - 23"},"PeriodicalIF":0.0,"publicationDate":"2023-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42944377","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-01DOI: 10.1177/17835917221143060
Deniz Ece Dalgic-Tetikol, B. Guloglu, Emin Köksal
Digital transformation offers tremendous opportunities for emerging economies like Turkey. However, the full potential of digital advancements can only be achieved with the widespread adoption of digital technologies, which depends on the capable delivery of information and communication technologies (ICT) and their effective usability. Despite increased Internet penetration rates in Turkey in recent years, disparities in Internet adoption continue to persist. This study investigates whether and to what extent key demographic and socioeconomic factors are associated with the first-level digital divide in Turkey. The phenomenon is discussed in three aspects: device access, Internet access, and Internet use. The findings demonstrate that the vast majority of people in Turkey have Internet-enabled devices, mainly smartphones. Age, income, and education are significant predictors of Internet access. However, even when access is available, large disparities exist among gender, age, income, education, and employment groups in terms of Internet use. Moreover, our findings reveal significant regional differences in both Internet access and use. The results point to the need for a more coherent vision on ICT policies such that the need for demand-side programs are intended to stimulate broadband adoption widely by those groups. This paper provides useful pointers that can facilitate further academic research and structural decisions among policy-makers, by emphasizing the high-priority target groups.
{"title":"Determinants of internet adoption in Turkey and the need for a more coherent vision on information and communication technologies policy","authors":"Deniz Ece Dalgic-Tetikol, B. Guloglu, Emin Köksal","doi":"10.1177/17835917221143060","DOIUrl":"https://doi.org/10.1177/17835917221143060","url":null,"abstract":"Digital transformation offers tremendous opportunities for emerging economies like Turkey. However, the full potential of digital advancements can only be achieved with the widespread adoption of digital technologies, which depends on the capable delivery of information and communication technologies (ICT) and their effective usability. Despite increased Internet penetration rates in Turkey in recent years, disparities in Internet adoption continue to persist. This study investigates whether and to what extent key demographic and socioeconomic factors are associated with the first-level digital divide in Turkey. The phenomenon is discussed in three aspects: device access, Internet access, and Internet use. The findings demonstrate that the vast majority of people in Turkey have Internet-enabled devices, mainly smartphones. Age, income, and education are significant predictors of Internet access. However, even when access is available, large disparities exist among gender, age, income, education, and employment groups in terms of Internet use. Moreover, our findings reveal significant regional differences in both Internet access and use. The results point to the need for a more coherent vision on ICT policies such that the need for demand-side programs are intended to stimulate broadband adoption widely by those groups. This paper provides useful pointers that can facilitate further academic research and structural decisions among policy-makers, by emphasizing the high-priority target groups.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"23 1","pages":"311 - 336"},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41553753","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-19DOI: 10.1177/17835917221141324
Lukas von Ditfurth, Gregor Lienemann
Following its approval by the European Parliament in April 2022, the Data Governance Act (DGA) is the first legislative instrument announced in the European Data Strategy to come into force. Aimed at facilitating the re-use and sharing of data in and between the private and public sectors, the DGA introduces regulation for a newly emerging type of digital platforms – the so-called “providers of data intermediation services”. In order to offer their services on the market, providers will have to submit to a prior notification procedure and show compliance with several conditions placed on their economic activities. The regulation of data intermediaries is intended to increase their trustworthiness and ensure the competitiveness of the markets in which they operate. Recent experiences with digital platforms have shown the potential of intermediaries to organise and facilitate markets. At the same time, digital platforms pose undeniable risks to their users and markets at large. Against this backdrop, the role of data intermediaries as envisioned by the DGA must be examined carefully before turning to the question whether the DGA can achieve competitive and trustworthy data sharing through registered third parties. This paper intends to shed light on these and other issues by examining, in-depth, the chapter in the DGA dedicated to data intermediaries (Art. 10–15) from a legal, policy and competition economics perspective. In particular, this paper explores how the experiences made with large-scale digital platforms have shaped the DGA. Thereby, this paper aims to contribute towards a holistic understanding of these provisions as a basis for an informed discussion on the legal framework and on possible alternatives.
{"title":"The Data Governance Act: – Promoting or Restricting Data Intermediaries?","authors":"Lukas von Ditfurth, Gregor Lienemann","doi":"10.1177/17835917221141324","DOIUrl":"https://doi.org/10.1177/17835917221141324","url":null,"abstract":"Following its approval by the European Parliament in April 2022, the Data Governance Act (DGA) is the first legislative instrument announced in the European Data Strategy to come into force. Aimed at facilitating the re-use and sharing of data in and between the private and public sectors, the DGA introduces regulation for a newly emerging type of digital platforms – the so-called “providers of data intermediation services”. In order to offer their services on the market, providers will have to submit to a prior notification procedure and show compliance with several conditions placed on their economic activities. The regulation of data intermediaries is intended to increase their trustworthiness and ensure the competitiveness of the markets in which they operate. Recent experiences with digital platforms have shown the potential of intermediaries to organise and facilitate markets. At the same time, digital platforms pose undeniable risks to their users and markets at large. Against this backdrop, the role of data intermediaries as envisioned by the DGA must be examined carefully before turning to the question whether the DGA can achieve competitive and trustworthy data sharing through registered third parties. This paper intends to shed light on these and other issues by examining, in-depth, the chapter in the DGA dedicated to data intermediaries (Art. 10–15) from a legal, policy and competition economics perspective. In particular, this paper explores how the experiences made with large-scale digital platforms have shaped the DGA. Thereby, this paper aims to contribute towards a holistic understanding of these provisions as a basis for an informed discussion on the legal framework and on possible alternatives.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"23 1","pages":"270 - 295"},"PeriodicalIF":0.0,"publicationDate":"2022-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43974703","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-21DOI: 10.1177/17835917221135507
Guenter Knieps
The transition towards 5G-based smart network industries is concomitant with a fundamental change of the traditional physical infrastructures driven by digitalization which pervades all decision-relevant components of the infrastructure value chains. The goal of this paper is to develop a network economic foundation for 5G-based network slicing based on a generalization of the concept of virtual networks combining a required sequence of virtual networks in order to fulfill the necessities of smart network industries. The key concept to analyze the economic incentives of the different actors involved is the well-established concept of opportunity costs of usage of scarce network resources. The allocation problem of traffic service providers fundamentally differs from the allocation problem of virtual network providers. Whereas interoperability and interconnection between different virtual networks are not standardized significant standardization efforts via network slicing can be observed in particular from the perspective of end-to-end QoS guarantees. 5G-based big data use cases with cross-border challenges for network slicing, and the subsequent interoperability of virtual networks, enable tremendous potential for innovation in smart physical infrastructures. The 5G-based European Future Railway Mobile Communication System and cross-border oriented, 5G-based connected, cooperative, and automated mobility applications are investigated with a large and open set of heterogeneous use cases requiring cross-border standardization of QoS-differentiated network slices.
{"title":"The economics of 5G-based network slicing in smart network industries","authors":"Guenter Knieps","doi":"10.1177/17835917221135507","DOIUrl":"https://doi.org/10.1177/17835917221135507","url":null,"abstract":"The transition towards 5G-based smart network industries is concomitant with a fundamental change of the traditional physical infrastructures driven by digitalization which pervades all decision-relevant components of the infrastructure value chains. The goal of this paper is to develop a network economic foundation for 5G-based network slicing based on a generalization of the concept of virtual networks combining a required sequence of virtual networks in order to fulfill the necessities of smart network industries. The key concept to analyze the economic incentives of the different actors involved is the well-established concept of opportunity costs of usage of scarce network resources. The allocation problem of traffic service providers fundamentally differs from the allocation problem of virtual network providers. Whereas interoperability and interconnection between different virtual networks are not standardized significant standardization efforts via network slicing can be observed in particular from the perspective of end-to-end QoS guarantees. 5G-based big data use cases with cross-border challenges for network slicing, and the subsequent interoperability of virtual networks, enable tremendous potential for innovation in smart physical infrastructures. The 5G-based European Future Railway Mobile Communication System and cross-border oriented, 5G-based connected, cooperative, and automated mobility applications are investigated with a large and open set of heterogeneous use cases requiring cross-border standardization of QoS-differentiated network slices.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"23 1","pages":"296 - 310"},"PeriodicalIF":0.0,"publicationDate":"2022-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47051874","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-01DOI: 10.1177/17835917221088770
P. Beria, S. Tolentino, Evgeniia Shtele, V. Lunkar
The effect of competition on prices in the passenger transport sector can be difficult to estimate because of many influencing factors such as state regulation, demand, seasonality, and reactions of indirect competitors. A case of great interest in the rail sector is Italy, where on-track competition in the high-speed segment has been in place for nearly ten years. The paper aims at answering the question whether—and how much—incumbent’s prices are affected when competition starts on a route previously in monopoly. The case is the start of operations on the Turin–Milan–Venice route, where Italo entered in May 2018. Adopting a difference-in-difference approach, we check if Trenitalia changed the price strategy on the route before and after the entry, with respect to two control groups. The addition of placebo tests allows us to understand the ranges of significance of the results and to estimate the noise level of the estimates. Our findings suggest that the start of competition led to lower prices in the short-medium period. In the specific case, the Milano–Venezia route saw Trenitalia’s prices reduced by 21–26% (±2–5%) in a time span of 84–140 days after Italo’s entry and for advanced bookings from 2 to 10 days. Last-day prices remain unchanged, while early bookings are reduced by just 9%. This price reduction does not remain stable in the longer term, when other effects add up and blur the effect of the entry. Nevertheless, we keep observing a smaller, ∼15%, but still negative prices change.
{"title":"A Difference-In-Difference Approach to Estimate the Price Effect of Market Entry in High-Speed Rail","authors":"P. Beria, S. Tolentino, Evgeniia Shtele, V. Lunkar","doi":"10.1177/17835917221088770","DOIUrl":"https://doi.org/10.1177/17835917221088770","url":null,"abstract":"The effect of competition on prices in the passenger transport sector can be difficult to estimate because of many influencing factors such as state regulation, demand, seasonality, and reactions of indirect competitors. A case of great interest in the rail sector is Italy, where on-track competition in the high-speed segment has been in place for nearly ten years. The paper aims at answering the question whether—and how much—incumbent’s prices are affected when competition starts on a route previously in monopoly. The case is the start of operations on the Turin–Milan–Venice route, where Italo entered in May 2018. Adopting a difference-in-difference approach, we check if Trenitalia changed the price strategy on the route before and after the entry, with respect to two control groups. The addition of placebo tests allows us to understand the ranges of significance of the results and to estimate the noise level of the estimates. Our findings suggest that the start of competition led to lower prices in the short-medium period. In the specific case, the Milano–Venezia route saw Trenitalia’s prices reduced by 21–26% (±2–5%) in a time span of 84–140 days after Italo’s entry and for advanced bookings from 2 to 10 days. Last-day prices remain unchanged, while early bookings are reduced by just 9%. This price reduction does not remain stable in the longer term, when other effects add up and blur the effect of the entry. Nevertheless, we keep observing a smaller, ∼15%, but still negative prices change.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"23 1","pages":"183 - 213"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47464928","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-03DOI: 10.1177/17835917221112104
A. Solak
Since 2002, the Turkish government has increased its interest in rail transport after neglecting it for more than half a century. The government invested significant sums in the high-speed network and allocated substantial funds for the modernization of conventional rail infrastructure, the expansion of the network, and the construction of logistics centers. In addition, in 2013, the government restructured the rail market and opened it to competition. This paper examines recent rail policy in terms of modal shift to determine whether there is a radical shift in national transportation policy, which has been dominated by road programs. Despite significant steps to help rail achieve a breakthrough, our analysis does not show a strong shift in investment priorities that would lead to modal shift.
{"title":"Rail policies in Turkey after 2002: Is there a modal shift?","authors":"A. Solak","doi":"10.1177/17835917221112104","DOIUrl":"https://doi.org/10.1177/17835917221112104","url":null,"abstract":"Since 2002, the Turkish government has increased its interest in rail transport after neglecting it for more than half a century. The government invested significant sums in the high-speed network and allocated substantial funds for the modernization of conventional rail infrastructure, the expansion of the network, and the construction of logistics centers. In addition, in 2013, the government restructured the rail market and opened it to competition. This paper examines recent rail policy in terms of modal shift to determine whether there is a radical shift in national transportation policy, which has been dominated by road programs. Despite significant steps to help rail achieve a breakthrough, our analysis does not show a strong shift in investment priorities that would lead to modal shift.","PeriodicalId":38329,"journal":{"name":"Competition and Regulation in Network Industries","volume":"23 1","pages":"229 - 242"},"PeriodicalIF":0.0,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49321329","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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