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Can evidence of pricing power help market power assessment? Broadband Internet in Ireland and the Netherlands

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  • Correa, Lisa
  • Crocioni, Pietro

Abstract

This article proposes a simple hedonic price test to assess whether firms may have pricing power. The test allows NRAs to compare prices of providers of differentiated products on a like-for-like basis. Testing for pricing power could be a useful complement to market share analysis. This is especially the case in market reviews periodically undertaken by European communications regulators. As an illustration the test was applied to broadband Internet access services in Ireland and the Netherlands. Results appear encouraging as they are broadly aligned to the decisions of the regulatory authorities in both countries that the incumbent DSL operators had market power at the time.

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  • Correa, Lisa & Crocioni, Pietro, 2012. "Can evidence of pricing power help market power assessment? Broadband Internet in Ireland and the Netherlands," Telecommunications Policy, Elsevier, vol. 36(5), pages 419-433.
    • Handle: RePEc:eee:telpol:v:36:y:2012:i:5:p:419-433
    DOI: 10.1016/j.telpol.2011.11.014
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    Cited by:

    1. McDonough, Carol C., 2013. "Consumer demand for fixed and mobile broadband," 24th European Regional ITS Conference, Florence 2013 88485, International Telecommunications Society (ITS).
    2. Seán Lyons & Bryan Coyne, 2017. "The price of broadband quality: tracking the changing valuation of service characteristics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(6), pages 516-532, August.

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