Research On Access Pricing Under Mixed Oligopoly Market Structure

Access pricing problem is the core of the Internet industry. Network infrastructure laid in the Internet industry need huge fixed costs, so the access price is higher than the marginal cost. In the structure of the mixed ownership, the property rights structure changes will affect access price and social welfare. Following the introduction of property in the network industry, due to the changes of private equity and state-owned shares, the vendor’s access will also affect the price and payment function. Therefore, in terms of access pricing to choose the appropriate and effective property right structure will be beneficial to the development of industry and the improvement of social welfare.In this article, through analysis of property right structure of the upstream manufacturers, we build a game model of mixed oligopoly access pricing, respectively from the vertical separation and the network structure of vertical integration, discussed with network equipment manufacturers in the mixed ownership with certain social burden, on the basis of how private equity percentage change affects access price and the total social welfare.In the second part, after the introduction, this paper through the analysis of the vertical separation of market structure, under certain model assumptions, the share of private social welfare has been optimized under mixed ownership share In the proportion of firms, and on this basis it extends to more general vertical integration of access pricing model. In the framework of vertical integration model, due to upstream manufacturers the participate in the production of the downstream product markets, which have an impact on aspects of production decisions and other downstream manufacturers, making analysis more complicated. Therefore, this article focuses on the access pricing model vertical integration. The third part of this paper is to establish a vertically integrated access pricing model, discuss changes in ownership structure of the access pricing, consumer surplus analysis firm profit, social welfare and other factors, and got some basic judgment:the optimal ratio of mixed ownership in private equity firms and the relationship between the productivity of downstream two firms, which will have new vendors into the welfare and social impact, and can understand the basis of the marginal cost of downstream manufacturers seek most maximize social welfare structure of property rights under excellent conditions. In the fourth part, first of all is a comparative analysis of access pricing in vertical separation market structure. By comparing the access pricing in two different market structures, we have to analyze whether or not a bottleneck facility vendors get on vertical exclusion, as well as changes in ownership structures affect the behavior of the exclusion vendors. The fifth part is a summary to the problem of mixed oligopoly pricing access, and give some of my own thinking.