By Paul J. J. Welfens, Mathias Weske (auth.), Professor Dr. Paul J. J. Welfens, Professor Dr. Mathias Weske (eds.)

The twenty first century is more and more formed by means of the growth of software program functions and electronic networking. This e-book analyzes the dynamics and affects of software program improvement and discusses new institutional and monetary adjustments within the context of electronic marketplace economies. Regulatory ways in OECD international locations are in comparison and nation experiences evaluated with admire to innovation and welfare facets. The ebook additionally examines telecommunications rules of mounted line networks, cable television and cellular communications. there's additionally concentrate on the position of ecu framework rules and problems with marketplace energy in addition to Schumpeterian dynamics.

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Poland, Greece and Germany are positioned at the bottom of the rankings. ECTA has argued that there is a positive correlation between the scorecard results and the level of investment in the telecommunications sector. 71 n m 234 225 213 213 200 i 100 0 ^A-'A<^^'v/ r o^ ^^ Cf Source: ECTA (2005), Regulatory Scoreboard. Fig. 6. Regulatory scorecard To some extent, foreign direct investment should contribute to a narrowing of the scores across countries. There is certainly some regulatory arbitrage across EU Digital Social Market Economy - Towards a New Economic System 43 countries, at the same time one cannot overlook that large EU countries - representing relatively important markets - still enjoy considerable policy autonomy.

If firm 1 raises the price other firms will, by assumption, not follow so that the effective demand curve is more elastic above point B: see the segment BA'. g. as a consequence of bundling of products in the market - the demand curve becomes steeper above point B: see segment BA; temporary pricing according to marginal costs implies a reduced quantity in this situation with a more pronounced price leadership (compare point F' and F). If the situation is a stable oligopoly with clear leadership there is not a big difference between the hypothetical optimum defined by equality of marginal costs and the demand curve and pricing based on average costs (point B and equilibrium quantity qo versus optimum output qj and point E, respectively).

The careful exploitation of opportunities to raise productivity in the information and commtinication technology (ICT) could be a new and important policy element (BARFIELD/HEIDUKAVELFENS, 2002). Raising labour productivity was an important element of high growth in the US and several EU countries in the 1990s. While there is no debate about the productivity-enhancing role of ICT production, it is less clear whether the use of ICT - linked to ICT capital accumulation - strongly contributes to higher growth of output and productivity.

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