Negotiating for Improved Interconnection: The Incentives to Bargain

Roy Morris and Robert Preece.  

OSP Working Paper 7 (Apr 1982) addresses the issue of determining the types and quality of interconnection between local telephone companies and other telecommunications firms.  The authors argue that, Instead of prescribing a detailed solution, the FCC should establish ground rules for negotiations, i.e. establish "market rules."  They also argue that the FCC should establish the "starting point" from which bargaining can take place.  Such a notiations starting point, they say, is the a priori property rights vested in the bargaining parties.