In this section

5.1 Why Regulate Prices? 5.2 Economic and Accounting Measures of Cost 5.3 Useful Economic Concepts 5.4 Pricing Principles for the ICT Sector 5.5 Setting the Level and Structure of Prices 5.6 Tariff Rebalancing 5.7 International Benchmarking of Prices 5.8 Rate of Return Regulation 5.9 Incentive Regulation 5.10 Rate of Return Regulation versus Price Caps 5.11 Implementing Price Caps 5.12 Towards a Double Price Cap 5.13 Price Regulation and Multiple Play Offerings

ICT Regulation Toolkit Module 2. Competition and Price Regulation 5 Regulating Prices 5.3 Useful Economic Concepts

5.3 Useful Economic Concepts

This section introduces some economic concepts that are particularly relevant to the task of price setting:

• Economic efficiency,
• Economies of scale and scope, and
• Single and multiple-service firms.

Contents

5.3.1 Economic Efficiency and Pricing 5.3.2 Economies of Scale and Scope 5.3.3 Single- and Multiple-Service Firms