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Standardization In The Wireless Internet Market: Lessons From Japan And Korea

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  • Jeong‐Yoo Kim
  • Taehun Jung
  • Nae‐Chan Lee

Abstract

The wireless Internet market has been growing rapidly since NTT DoCoMo first introduced the service in 1999. This paper provides a framework within which the wireless Internet market can be analysed so as to draw valuable policy implications. We show that if platforms are standardized: (i) social welfare is increased with the rational expectation of larger installed bases; (ii) the neutrality of a revenue-sharing ratio that is valid for non‐standardized network platforms is affected; and (iii) the collusive interconnection charge is lower than the social optimum insofar as the population mass of content providers is less dense than that of Internet users.

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File URL: http://hdl.handle.net/10.1111/j.1468-0106.2010.00519.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Pacific Economic Review.

Volume (Year): 15 (2010)
Issue (Month): 5 (December)
Pages: 620-636

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Handle: RePEc:bla:pacecr:v:15:y:2010:i:5:p:620-636

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1361-374X

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