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Market Power and Collusion on Interconnection Phone Market in Tunisia : What Lessons from International Experiences

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  • Sami Debbichi

    (AEDD - Analyse Economique et Développement Durable - Université de Tunis El Manar)

  • Walid Hichri

    (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I)

Abstract

We try in this paper to characterize the state of mobile phone market in Tunisia. Our study is based on a survey of foreign experience (Europe) in detecting collusive behavior and a comparison of the critical threshold of collusion between operators in developing countries like Tunisia. The market power is estimated based on the work of Parker Roller (1997) and the assumption of "Balanced Calling Pattern". We use then the model of Friedman (1971) to compare the critical threshold of collusion. We show that the "conduct parameter" measuring the intensity of competition is not null during the period 1993-2011. Results show also that collusion is easier on the Tunisian market that on the Algerian, Jordanian, or Moroccan one.

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Paper provided by HAL in its series Working Papers with number halshs-00956638.

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Date of creation: 2014
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Handle: RePEc:hal:wpaper:halshs-00956638

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Keywords: Termination rate; Market power; Competition; Mobile phone Market;

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  1. Laurent FLOCHEL, 1999. "Interconnexion de réseaux et charge d'accès : une analyse stratégique," Annales d'Economie et de Statistique, ENSAE, issue 53, pages 171-196.
  2. Nathalie Colombier & Zouhaïer M’Chirgui & Thierry Pénard, 2010. "Une analyse empirique des stratégies d'interconnexion des opérateurs internet," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 25-50.
  3. Reinhard Selten, 1973. "A Simple Model of Imperfect Competition, where 4 are Few and 6 are Many," Working Papers 008, Bielefeld University, Center for Mathematical Economics.
  4. Geoff Edwards & Leonard Waverman, 2006. "The Effects of Public Ownership and Regulatory Independence on Regulatory Outcomes," Journal of Regulatory Economics, Springer, vol. 29(1), pages 23-67, 01.
  5. Baranes, Edmond & Poudou, Jean-Christophe, 2010. "Cost-based access regulation and collusion in a differentiated duopoly," Economics Letters, Elsevier, vol. 106(3), pages 172-176, March.
  6. Harbord David & Pagnozzi Marco, 2010. "Network-Based Price Discrimination and `Bill-and-Keep' vs. `Cost-Based' Regulation of Mobile Termination Rates," Review of Network Economics, De Gruyter, vol. 9(1), pages 1-46, February.
  7. Felix Höffler, 2009. "Mobile termination and collusion, revisited," Journal of Regulatory Economics, Springer, vol. 35(3), pages 246-274, June.
  8. Artz, Benjamin & Heywood, John S. & McGinty, Matthew, 2009. "The merger paradox in a mixed oligopoly," Research in Economics, Elsevier, vol. 63(1), pages 1-10, March.
  9. Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
  10. Wallsten, Scott J, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 1-19, March.
  11. Sami Debbichi & Walid Hichri, 2013. "Threshold of Preference for Collusion and Interconnection Fees in Different Market Structures : the Tunisian Mobile Market Case," Working Papers 1307, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  12. Dessein, Wouter, 2003. " Network Competition in Nonlinear Pricing," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 593-611, Winter.
  13. Edmond BARANES & Laurent FLOCHEL, 1999. "Interconnexion de réseaux et qualité de l’infrastructure comme barrière à l’entrée : quels instruments de régulation?," Discussion Papers (REL - Recherches Economiques de Louvain) 1999012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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