Ex ante margin squeeze tests in the telecommunications industry: What is a reasonably efficient operator?
This paper studies Reasonably Efficient Operator (REO) margin squeeze tests. It focuses on the implementation of REO tests by National Regulatory Authorities (NRAs). It provides a theoretical framework to analyze the various test adjustments NRAs use to model a REO. It presents a benchmark of NRAs test implementation choices.
margin squeeze telecommunications imputation test regulation