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LRIC
LRIC or LRAIC (the distinction between the two is presented below) is an abbreviation for "Long-Run Average Incremental Cost". A LRIC model is often used in telecommunications regulation to determine the price paid by competitors for services provided by an operator with significant market power, usually the incumbent (former monopoly). Each of LRIC's components are analysed below. Long run Long run implies that all inputs are considered variable. In other words, even capital equipment can vary in response to a change in demand. Average LRAIC can be defined as including all the costs of services provided within an increment. In the context of telecommunications, LRAIC has often been used to set interconnection charges with the increments usually defined as the whole group of services using the core network. These services (PSTN The public switched telephone network (PSTN) provides infrastructure and services for public telecommunication Telecommunication is the t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Telecommunications
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that feasible with the human voice, but with a similar scale of expediency; thus, slow systems (such as postal mail) are excluded from the field. The transmission media in telecommunication have evolved through numerous stages of technology, from beacons and other visual signals (such as smoke signals, semaphore telegraphs, signal flags, and optical heliographs), to electrical cable and electromagnetic radiation, including light. Such transmission paths are often divided into communication channels, which afford the advantages of multiplexing multiple concurrent communication sessions. ''Telecommunication'' is often used in its plural form. Other examples of pre-modern long-distance communication included audio messages, such as code ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Power
In economics, market power refers to the ability of a firm to influence the price at which it sells a product or service by manipulating either the supply or demand of the product or service to increase economic profit. In other words, market power occurs if a firm does not face a perfectly elastic demand curve and can set its price (P) above marginal cost (MC) without losing revenue.Syverson, C. (2019). Macroeconomics and Market Power. The Journal of Economic Perspectives, 33(3), 23-43. https://doi.org/10.1257/jep.33.3.23 This indicates that the magnitude of market power is associated with the gap between P and MC at a firm's profit maximising level of output. Such propensities contradict perfectly competitive markets, where market participants have no market power, P = MC and firms earn zero economic profit. Market participants in perfectly competitive markets are consequently referred to as 'price takers', whereas market participants that exhibit market power are referred to as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Incumbent
The incumbent is the current holder of an office or position, usually in relation to an election. In an election for president, the incumbent is the person holding or acting in the office of president before the election, whether seeking re-election or not. In some situations, there may not be an incumbent at time of an election for that office or position (ex; when a new electoral division is created), in which case the office or position is regarded as vacant or open. In the United States, an election without an incumbent is referred to as an open seat or open contest. Etymology The word "incumbent" is derived from the Latin verb ''incumbere'', literally meaning "to lean or lay upon" with the present participle stem ''incumbent-'', "leaning a variant of ''encumber,''''OED'' (1989), p. 834 while encumber is derived from the root ''cumber'', most appropriately defined: "To occupy obstructively or inconveniently; to block fill up with what hinders freedom of motion or action; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monopoly
A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly and duopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Long Run
In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints and markets are not fully in equilibrium. More specifically, in microeconomics there are no fixed factors of production in the long-run, and there is enough time for adjustment so that there are no constraints preventing changing the output level by changing the capital stock or by entering or leaving an industry. This contrasts with the short-run, where some factors are variable (dependent on the quantity produced) and others are fixed (paid once), constraining entry or exit from an industry. In macroeconomics, the long-run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short-run when these variables may not fully adjust. History The d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
PSTN
The public switched telephone network (PSTN) provides infrastructure and services for public telecommunication Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than tha .... The PSTN is the aggregate of the world's circuit-switched telephone networks that are operated by national, regional, or local telephony operators. These consist of telephone lines, fiber optic cables, microwave transmission links, Routing in cellular networks, cellular networks, communications satellites, and undersea telephone cables, all interconnected by switching centers which allow most telephones to communicate with each other. Originally a network of fixed-line Analog signal processing, analog telephone systems, the PSTN is now almost entirely digital in its core network and includes mobile and other networks, a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
