Bundling and collusion in communications markets
AbstractThis paper deals with competition in communications markets between an incumbent and a competitor. We analyse the effect of bundling strategy by a firm that enters an incumbent market. This market dimension has deep implications on the sustainability of collusion. In an infinitely repeated game framework, we show that the bundling strategy of the entrant might hinder collusion. Furthermore, we consider a setting in which the competitor uses a one-way access that the incumbent possesses. In such a situation, we show that when the competitor bundles its products, a low access charge might increase the feasibility of collusion. This result has an important policy implication.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Management and Network Economics.
Volume (Year): 1 (2009)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID==259
networks; bundling; access charge; unbundling local loop; collusion; telecommunications; competition; regulation; differentiation; communications markets; management.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.