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Exploring Locational Equilibria In A Competitive Broadband Access Market: Theoretical Modeling Approach

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  • Gunhak Lee
  • Morton E. O'Kelly

Abstract

ABSTRACT Due to strong local competition in the broadband access market, strategic locational planning is very important for service providers. In this paper, we explore locational equilibria in a competitive broadband market under several situations: with and without customer loyalty and under different initial market conditions. To do this, we propose a competitive broadband location model based on probabilistic patronage behavior, explicitly considering the characteristics of the broadband market and competitive structures. Also, we suggest iterative algorithms to identify spatial equilibria. We show that competing location strategies may lead to a stable spatial configuration of market share.

Suggested Citation

  • Gunhak Lee & Morton E. O'Kelly, 2009. "Exploring Locational Equilibria In A Competitive Broadband Access Market: Theoretical Modeling Approach," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 953-975, December.
    • Handle: RePEc:bla:jregsc:v:49:y:2009:i:5:p:953-975
    DOI: 10.1111/j.1467-9787.2009.00609.x
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