Computing Abuse Related Damages in the Case of New Entry: An Illustration for the Directory Enquiry Services Market
AbstractA number of European countries, among which the UK and Spain, have opened up their Directory Enquiry Services (DQs) market to competition. In Spain, both local and foreign firms challenged the incumbent as of April 2003. The latter abused its dominant position by providing an inferior quality version of the (essential) input, namely the subscribers’ database. We illustrate how it is possible to quantify the effect of abuse in situation were the entrant has no previous history in the market. We use the UK experience to construct the relevant counterfactual, that is the "but for abuse" scenario. After controlling for relative prices and advertising intensity, we find that one of the foreign entrants achieved a Spanish market share substantially below what it would have obtained in the absence of abuse.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5813.
Date of creation: Sep 2006
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Other versions of this item:
- Siotis, Georges & Martínez Granado, María Teresa, 2006. "Computing abuse related damages in the case of new entry: An illustration for the Directory Enquiry Services market," DFAEII Working Papers 2006-02, University of the Basque Country - Department of Foundations of Economic Analysis II.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-28 (All new papers)
- NEP-COM-2006-10-28 (Industrial Competition)
- NEP-CSE-2006-10-28 (Economics of Strategic Management)
- NEP-REG-2006-10-28 (Regulation)
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