K. Domon et K. Kiyono, A voluntary subsidy scheme for the accounting rate system in internationaltelecommunications industries, J REGUL EC, 16(2), 1999, pp. 151-165
This paper proposes a new scheme complementing the current accounting rate
system for international telecommunications industries. From an economic st
andpoint, the current accounting rate system results in high service charge
s as well as inefficient production. This is a source of contention between
developed countries and less developed countries. Although there have been
discussions concerning the disadvantages of the accounting rate system, a
concrete and workable alternative has not yet been proposed. In this paper,
we shall propose a method, taking into account the utilization of a subsid
y from a developed country to a less developed country to reduce the accoun
ting rate in international telecommunications, and this scheme brings a sec
ond-best solution.