Pricing capital under mandatory unbundling and facilities sharing

by Robert S. Pindyck

Publisher: National Bureau of Economic Research in Cambridge, Mass

Written in English
Published: Pages: 29 Downloads: 379
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Subjects:

  • Trade regulation -- Econometric models

Edition Notes

Transfer pricing adjustments have been a feature of many tax systems since the s. The United States led the development of detailed, comprehensive transfer pricing guidelines with a White Paper in and proposals in , which ultimately became regulations in The South African Revenue Service (SARS) recently issued a draft Binding General Ruling (BGR) that addresses the interpretation of the words "at the end of the day after that distribution" as used in s46(3)(a)(v) of the Income Tax Act 58 of (Act). Section 46 of the Act deals with unbundling transactions and provides parties to such a transaction with relief from various taxes that would. Transfer Pricing Developments – Cost Sharing Arrangements Decem within IRS transfer pricing enforcement” and that there were more than $50 billion in possible adjustments under review and billions more in cases not under scrutiny.5 The heightened focus on transfer pricing issues is evidenced by recent IRS realignments. The IRS has. Hausman, Jerry A. & Sidak, J Gregory () ‘ A Consumer-Welfare Approach to the Mandatory Unbundling of Telecommunications Networks ’. Yale Law Journal: Hawk, Barry E. () ‘System Failure: Vertical Restraints and EC Competition Law’. 32 Common Market Law Review:

  FAR (b)(3) says cost of money is allowable if "[t]he estimated facilities capital cost of money is specifically identified and proposed in cost proposals relating to the contract under which the cost is to be claimed." Failure to comply with FAR (b)(3) is a circumstance which would make FCCOM an unallowable cost. The retailer's profit is highest under the revenue and cost-sharing contract, and lowest under the wholesale contract. From Fig. 4, Fig. 5, we can see that both members in the supply chain benefit most under revenue and cost-sharing contracts, and gain the least under the wholesale contract. Therefore, the revenue and cost-sharing contract. Unbundling arose in the context of policies aimed at stimulating competition to the ILECs. The act mandated unbundling of local loops and other network elements. In contrast to unbundling, facilities-based competition involves new entrants using their own equipment and physical network to compete. The US Department of Treasury has issued final cost sharing regulations under Treas. Reg. § These Final Regulations issued in December, update the Temporary Regulations issued in and contain no major departures from the earlier regulations. Rather, the Final Regulations sharpen and clarify the Internal Revenue Service positions in light of recent court cases, taxpayer comments.

Identifying And Applying Facilities Capital Cost Of Money Factors. o. - Calculating Contract Facilities Capital. Cost Of Money. o: to fabricate covers for equipment built under a Government contract, would be charged directly to that contract and no other contract. pricing. (3) (4) of (5). In other words, mandatory unbundling can crowd out facilities-based competition and thereby serve to ensure that pervasive, mandatory unbundling is required for retail competition in perpetuity. What is of particular concern is a “bad equilibrium” in which the ILECs do not invest because they cannot earn the required (market) returns and. Cost-sharing arrangements have been particularly popular among U.S. software developers with affiliated entities abroad. In some countries, as well as in the OECD guidelines, cost-sharing arrangements are referred to as cost-contribution IRS issued new proposed cost-sharing regulations in , which have drawn sharp criticism. Unbundling Pricing for Reservations from the Core Service CORNELL HOSPITALITY REPORT A by Sheryl Kimes and Jochen Wirtz lthough restaurants have long varied their price structure under certain circumstances, those price changes generally have involved specific promotions, set menus, or minimum-check requirements.

Pricing capital under mandatory unbundling and facilities sharing by Robert S. Pindyck Download PDF EPUB FB2

Pricing Capital Under Mandatory Unbundling and Facilities Sharing Robert S. Pindyck. NBER Working Paper No. Issued in March NBER Program(s):Asset Pricing, Industrial Organization The regulation of telecommunications, railroads, and other network industries has been based on mandatory unbundling and facilities sharing - entrants have the option to lease part or all of incumbents.

PRICING CAPITAL UNDER MANDATORY UNBUNDLING AND FACILITIES SHARING* by Robert S. Pindyck Massachusetts Institute of Technology Cambridge, MA This draft: April Abstract: The regulation of telecommunications, railroads, and other network industries has been based on mandatory unbundling and facilities sharing – entrants have the Cited by: Get this from a library.

Pricing capital under mandatory unbundling and facilities sharing. [Robert S Pindyck; National Bureau of Economic Research.]. Get this from a library. Pricing capital under mandatory unbundling and facilities sharing.

[Robert S Pindyck; National Bureau of Economic Research.] -- "The regulation of telecommunications, railroads, and other network industries has been based on mandatory unbundling and facilities sharing - entrants have the option to lease part or all of.

Downloadable. The regulation of telecommunications, railroads, and other network industries has been based on mandatory unbundling and facilities sharing - entrants have the option to lease part or all of incumbents' facilities if and when they desire, at rates determined by regulators.

This flexibility is of great value to entrants, but because investments are largely irreversible, it is. Robert S. Pindyck, "Pricing Capital Under Mandatory Unbundling and Facilities Sharing," NBER Working PapersNational Bureau of Economic Research, Inc.

Pindyck Robert S., "Mandatory Unbundling and Irreversible Investment in Telecom Networks," Review of Network Economics, De Gruyter, vol. 6(3), pagesSeptember. Member, Energy Facilities Siting Council, Commonwealth of Massachusetts () The World Bank (, ) Ministry of Foreign Affairs, Government of Japan () Tennessee Valley Authority, Office of the General Counsel () Federal Trade Commission () Special Consultant, U.S.

Department of State (). Pindyck R (a) Pricing capital under mandatory unbundling and facilities sharing. NBER Working Paper NoNBER, Washington Google Scholar Pindyck R (b) Real options in antitrust.

9 th International Conference on Real Options, Paris Google Scholar. Pindyck R () Mandatory unbundling and irreversible investment in telecom networks. NBER Working Paper No Google Scholar Pindyck R () Pricing capital under mandatory unbundling and. Unbundling, 17 YALE J. ON REG. 1, 19 (). 4 Id. at 5 Id.

at 6 Id. at For further discussion of why TELRIC pricing is not compensatory, see Jerry A. Hausman & J. Gregory Sidak, A Consumer-Welfare Approach to the Mandatory Unbundling of Telecommunications Networks, YALE L.J. (); Jerry A. Hausman, Valuing the Effect of. Unbundling is a process by which a large company with several different lines of business retains one or more core businesses and sells off the remaining assets, product/service lines, divisions.

Access pricing under uncertainty: Margin squeezes, real options, and the cost of capital⋆ Mar. Pricing capital under mandatory un bundling and. facilities sharing.

- (a): "Pricing Capital under Mandatory Unbundling and Facilities Sharing", NBER Working Paper no. - (b): "Real Options in Antitrust", presentation to the Real Options Conference. Definition of price unbundling: See price breakdown. Dictionary Term of the Day Articles Subjects BusinessDictionary.

In summary, mandatory unbundling was based on the following rationales: (1) competition in retail markets is desirable, (2) competition in retail markets cannot be achieved without mandatory unbundling, (3) mandatory unbundling promotes future facilities-based investment, and (4) competition in wholesale access markets is desirable.

ROBERT S. PINDYCK - MIT. Recommend Documents. No documents. ROBERT S. PINDYCK - MIT. Download PDF. 4 downloads 9 Views 52KB Size Report. Comment. Jan 1, Bank of Tokyo-Mitsubishi Professor of Economics and Finance.

Econometric Models and Economic Forecasts(with D.L. Rubinfeld). Unbundling can be done either across product dimensions, time or both. That gives four possible pricing scenarios: Monolithic Pricing: Customers pay once and get all product features whether or not they need all the features and for all the time.

Subscription Pricing: This is pay-as-you-go scheme. Customers pay periodically and get all the. Under mandatory unbundling an incumbent –rm has to share the use of some of its facilities with its competitors.

This implies that an essential input is, at the wholesale level, separated from the incumbent™s overall facilities, in ordertoallowforcommercial wholesale supplyof this input. Inthe particular. Controversial rules prompted by the Knight decision parse certain income tax deductions of estates and trusts.

The IRS issued final regulations on the controversial question of which costs incurred by trusts and estates are subject to the 2% floor on miscellaneous itemized deductions under Sec.

67(a).The regulations apply to tax years beginning on or after May 9, Current state of unbundling: Third Energy Package () § Refers to Directive /73/EC § Deeper requirements for transparent and fair third-party access to transmission, distribution, storage and LNG regasification facilities § Stronger bias toward effective unbundling between.

means it's official. Federal government websites always use domain. Before sharing sensitive information online, make sure you're on site by inspecting your browser's address (or "location") bar. The impact of research unbundling on the buy and sell side. Research unbundling comes at a time of heightened pressure on investment manager fee structures, with many managers looking to build scale and drive cost efficiencies.

Research providers offering access to quality content at competitive prices will be well placed to meet their needs. A lessee transporting or processing Federal natural gas under arm’s-length agreements must comply with the regulations for claiming allowances for transportation and processing costs in 30 CFR §§ and When a lessee pays a bundled rate under an arm’s length contract for both transportation and processing as well as to put.

The pricing of capital services under regulation Anna P. Della Valle and G. Campbell Watkins This paper discusses the pricing of services for long-lived capital-intensive energy projects.

Its purpose is to offer alternatives to rate structures associated with traditional accounting methods and rate-of. COST SHARING POLICIES AND PROCEDURES. Federal Definitions of Cost Sharing. sponsoring agency.

Cost sharing may include contributed effort, other University matching funds, unrecovered facilities and administrative costs, (F&A,or indirect costs) and third‐party in‐kind There are two types of cost sharing: mandatory cost sharing and. Unbundling can be done either across product dimensions, time or both.

That gives four possible pricing scenarios: Monolithic Pricing: Customers pay once and get all product features whether or not they need all the features and for all the time. Subscription Pricing: This is pay-as-you-go scheme. Customers pay periodically and get all the.

Unbundling - is it really necessary. Some argue that unbundling is just a complex minefield of regulation. Others think it is a necessary measure to keep a check on dominant local access telephony operators. In this paper we review the issues and explain why unbundling may become an important tool to facilitate the introduction of new technologies.

Unbundling Separation of a multinational firm's transfers of funds into discrete flows for specific purposes.

See: Bundling. Unbundling The practice of separating previously joined products and selling them. Unbundling tends to become more common under deregulatory policies. unbundling The separation and separate pricing of products and services by.

Federal ONRR unbundling. ONRR defines unbundling as “the process of taking gas transportation and/or processing fees in an ‘arm’s length’ situation and determining the allowed and disallowed costs for ONRR Royalty Reporting and Payment.”This process involves determining the point at which your gas satisfies the marketable condition rule.

Along with providing the Offices of Natural. [3] The SEC clarified its general approach to unbundling in C&DIs issued in These C&DIs came in the wake of a federal court decision in Greenlight Capital, L.P. Apple, Inc., WL (S.D.N.Y. Feb. 22, ), where the court enjoined Apple from combining four charter amendments into a single shareholder proposal.

In its C. We also seek comment on whether to establish a true-up mechanism for the difference between what a competitor pays for network elements under rates established pursuant to the current TELRIC rules and what that competitor would pay for the same facilities or services under rates established pursuant to any new rules we may adopt in this proceeding.Companies Unbundling transactions and CTC July Issue This article considers a further amendment which has been made to section 46 of the Income Tax Act 58 of (the Act) in anticipation of the introduction of the dividends tax: the inclusion of .matching contributions, rollover contributions, profit sharing contributions, Safe Harbor contributions, Roth (k) salary deferrals, etc.).

The recordkeeping service tracks contributions, investment asset allocation, “unbundled” vs. “bundled” this is really the only service affected.

In .