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The Economics of Number Portability: Switching Costs and Two-Part Tariffs

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  • Aoki, Reiko
  • Small, John

Abstract

This paper interprets number portability as a reduction of switching costs in a model of competition between telephone companies. We identify several cases by their cost and demand characteristics and show that social benefit of number portability are not guaranteed. Analysis using two-part tariff highlights the effect of how the technological cost of switching cost reduction effects the final market allocation.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18655/1/pie_dp483.pdf
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Bibliographic Info

Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 483.

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Length: 29 p.
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:hit:piecis:483

Note: Originally Aoki, R., Small, J. "The Economics of Number Portability: Switching Costs and Two Part Tariffs". CRNEC Working Paper, University of Auckland, 1999.
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References

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  1. Oren, Shmuel S. & Smith, Stephen A. & Wilson, Robert B., 1983. "Competitive nonlinear tariffs," Journal of Economic Theory, Elsevier, vol. 29(1), pages 49-71, February.
  2. Spulber, Daniel F, 1981. "Spatial Nonlinear Pricing," American Economic Review, American Economic Association, vol. 71(5), pages 923-33, December.
  3. Calem, Paul S. & Spulber, Daniel F., 1984. "Multiproduct two part tariffs," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 2(2), pages 105-115, June.
  4. Gans Joshua S & King Stephen Peter, 2001. "Regulating Endogenous Customer Switching Costs," The B.E. Journal of Theoretical Economics, De Gruyter, De Gruyter, vol. 1(1), pages 1-31, May.
  5. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
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Cited by:
  1. Aoki, Reiko & Arai, Yasuhiro, 2014. "Evolution of Standards and Innovation," CIS Discussion paper series 619, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  2. Stefan Buehler & Justus Haucap, 2004. "Mobile Number Portability," Journal of Industry, Competition and Trade, Springer, Springer, vol. 4(3), pages 223-238, 09.
  3. Aoki, Reiko & Arai, Yasuhiro, 2013. "Standards and Innovation: Technology vs. Installed Base," CIS Discussion paper series 601, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  4. AOKI Reiko & ARAI Yasuhiro, 2013. "Evolution of Standards and Innovation," Discussion papers 13075, Research Institute of Economy, Trade and Industry (RIETI).
  5. Sean Lyons, 2006. "Measuring the Benefits of Mobile Number Portability," Trinity Economics Papers, Trinity College Dublin, Department of Economics tep2009, Trinity College Dublin, Department of Economics.
  6. Justus Haucap, 2003. "Telephone Number Allocation: A Property Rights Approach," European Journal of Law and Economics, Springer, Springer, vol. 15(2), pages 91-109, March.

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