Intense Network Competition
AbstractFirst, we demonstrate how unregulated price setting in mobile telecommunications may lead to monopolization, even when networks are highly substitutable. Second, we demonstrate that a menu of structural rules, including (i) mandatory interconnection, (ii) reciprocal access prices and (iii) a ban on price discrimination of calls to other networks, may restore competition. This regulation requires neither demand data nor information about call costs.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 08-36.
Length: 42 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
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Web page: http://www.NETinst.org/
network competition; two-way access; mobile termination rates; network substitutability; entry deterrence;
Find related papers by JEL classification:
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-28 (All new papers)
- NEP-COM-2008-10-28 (Industrial Competition)
- NEP-IND-2008-10-28 (Industrial Organization)
- NEP-MIC-2008-10-28 (Microeconomics)
- NEP-NET-2008-10-28 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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