L51

Economics of Regulation

Regulatory ambiguity and policy uncertainty in South Africa’s telecommunications sector

The competitive effects of telecommunications transactions and the related impact that they have on economic growth and employment are influenced by the regulatory environment that governs the sector. In South Africa, the Independent Communications Authority of South Africa (ICASA) is responsible for implementing and enforcing ex ante regulation, while the Competition Commission’s role is to identify and remedy anti-competitive behaviour.

What’s in a Name? Reputation and Monitoring in the Audit Market

We demonstrate a tension between monitoring and reputation incentives when moving from collective reputation environments to individual reputation environments by analyzing a new rule. After January 2017, the name of the engagement partner has to be disclosed in all audit reports issued in the USA. We study the resulting change in auditor incentives and show that while the consequent higher reputation incentives can improve audit quality, partners have a lower incentive to monitor other partners when names are disclosed.

Estimating broadband diffusion in the EU using NUTS1 regional data

In this paper we use panel data on NUTS 1 regional data for 27 EU countries in the years 2006-2010 to analyze determinants of broadband diffusion. We estimate both linear demand specification and the logistic diffusion function. We find that, after controlling for regional differences due to socioeconomic factors, inter-platform competition approximated by an inter-platform Herfindahl index has a significant positive impact on broadband diffusion.

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