Price Strategies and Compatibility in Digital Networks
AbstractWe analyze competition between two horizontally differentiated network providers. New technologies help the providers to collect consumer-specific information, and such technologies increase the providers' ability to use price discrimination. One example is the mobile providers' choice of investing into third generation mobile systems (3G). Compared to the current 2G systems (GSM), 3G gives the providers more accurate customer specific information (e.g. with respect to customers' location at any time). Since new technologies give the opportunity to implement price discrimination, an interesting question is how the price strategies (price discrimination or not) affect the incentives to unilaterally establish a walled garden where the rival's customers have imperfect access. The main message of the paper is that walled garden strategies are more likely when firms use price discrimination than when they all use linear pricing.
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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 14 (2007)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIJB20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fabio M. Manenti & Ernesto Somma, 2002.
"One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries,"
0205001, EconWPA, revised 04 Oct 2002.
- Fabio Manenti & Ernesto Somma, 2008. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(3), pages 301-322.
- Fabio Maria Manenti & Ernesto Somma, 2008. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," "Marco Fanno" Working Papers 0068, Dipartimento di Scienze Economiche "Marco Fanno".
- Manenti, Fabio M. & Ernesto Somma, 2002. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," Royal Economic Society Annual Conference 2002 136, Royal Economic Society.
- Fabio Maria Manenti & Ernesto Somma, 2002. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," series 0004, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jan 2002.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.