In Competition in Telecommunications, Jean-Jacques Laffont and Jean Tirole analyze regulatory reform and the emergence of competition in network industries using the state-of-the-art theoretical tools of industrial organization, political economy,and the economics of incentives. The book opens with background information for the reader who is unfamiliar with current issues in the telecommunications industry. The following sections focus on four central aspects of the recent deregulatory movement: the introduction of incentive regulation; one-way access; the special nature of competition in an industry requiring two-way access; and universal service, in particular, the use of engineering models to compute subsidies and the design of universal service auctions.

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