Negotiations on regulated markets

Abstract

The paper considers some problems of negotiations between competitive subjects on regulated market. It is assumed that two subjects (players) have to compete with each other on the retail market and cooperate on the wholesale market. The wholesale market is regulated. The role of the regulator is to support players in negotiations, especially by introducing recommended solutions when the negotiations were broken off. It is considered how introducing a recommended solutions influence the process of negotiations on the wholesale market and a decision problem of choosing retail strategy, that precedes the process of negotiations. A decision problems of a regulator are also formulated. The problems are discussed in context of competition and cooperations between operators on the telecommunications services market.