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THE IMPOSSIBILITY OF THE ‘LADDER OF INVESTMENT’ APPROACH TO REGULATION
Author(s) -
HerreraGonzález Fernando,
CastejónMartín Luis
Publication year - 2011
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2010.02056.x
Subject(s) - impossibility , competition (biology) , investment (military) , economics , industrial organization , business , market economy , microeconomics , public economics , political science , law , ecology , politics , biology
The ‘ladder of investment’ is a regulatory approach that has been used by EU National Regulatory Authorities (NRAs) to foster infrastructure competition among telco operators. In this paper, it is argued, using the method of the Austrian School of Economics, that the ladder of investment cannot possibly attain the expected results.