Mehmet Karaçuka () (Department of Economics, Ege University) Recep Kök () (Department of Economics, Dokuz Eylul University)
Abstract
(This Paper is in Turkish) Services that are based on telecommunication networks, which are crucial infrastructural elements of the information societies, have been gaining increasing attention as composing higher shares within the economies. However, economies of scale in the supply side and network effects in the demand side prevent these markets to be perfectly competitive, and to reach social welfare maximizing equilibria; therefore making regulation a crucial instrument. Turkish mobile telecommunication services form the most competitive segment of overall telecommunication services in Turkey, where the competition process is dysfunctional in the fixed line services. Literature on network industries points out that incumbent firms may prevent new entrants’ competition via network effects and access/ interconnection charges. Our study emphasizes the importance of ex-ante regulation by analysing the strategic interaction among the entrant and incumbent firms in Turkish mobile telecommunications, as well as regulation problems.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Ege University, Department of Economics in its series Working Papers with number
0803.