Jean-Jacques Laffont’s Contributions and Impacts in China Xinzhu Zhang Research Center for Regulation and Competition Chinese Academy of Social Sciences.

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Presentation transcript:

Jean-Jacques Laffont’s Contributions and Impacts in China Xinzhu Zhang Research Center for Regulation and Competition Chinese Academy of Social Sciences

The big picture  Help create Research Center for Regulation and Competition (RCRC) in 1999 Need for education: Take graduate students aboard Wuhan Ph.D. Program Need for research Joint work (Laffont as a “godfather of researchers”) Need for training and consulting Training program for regulatory agencies with the help of the World Bank Institute

The impacts  The policy impact Telecoms Poverty Interconnection  The institutional impact  The human impact

The impact in telecoms  Impacts of his work Big success of his book Competition in Telecommunications Provide intellectual support to the regulator on major regulatory reforms and policies Restructuring of China’ s telecom sector Interconnection policy (more later)

The impact on poverty related topics  Universal service obligations and network investment (Estache-Laffont-Zhang, 2001) Rural users are favored by uniform pricing Network is smaller than discriminatory pricing or without USOs, or many remained unconnected Do not distort incentives for investment in LDCs

The impact on interconnections  ad hoc interconnection pricing (Estache-Laffont-Zhang, 2001) Tariff-based interconnection pricing Major insights of Laffont-Rey-Tirole (1998) still hold Retail prices are lower prices wars prevail in China’s telecom markets Help the telecom regulator design cost-based interconnection pricing in

The institutional impact  Big success of the RCRC Center with his support and promotion Help establish regulatory agency of electricity in 2002 Lasting impact on how policy issues are being thought through: Ongoing project on design of price cap regulation for telecom regulator

JJL’s human impact  Profound impact through: The substance of what he taught us Intensive mentoring of researchers  His spirit will be alive

Thank you!