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Mobile Access Charges and Collusion under Asymmetry

Listed author(s):
  • Edmond Baranes
  • Stefan Behringer
  • Jean-Christophe Poudou

This paper considers collusion between asymmetric networks in the telecommunications industry. Its primary purpose is to fill the gap between the literature on collusion between asymmetric firms and the literature on collusion in the telecommunications industry. Employing the standard Hotelling framework of horizontal product differentiation with non-linear tariffs and network based price discrimination we allow for differentiation in a second dimension. Modulo locations, the subscribers to each network operator face an asymmetry parameter that directly impacts their demands and can capture asymmetries in demand elasticities, in demand size, or even both. The implications of these asymmetries for the possibility of sustaining collusion are investigated under alternative access pricing regimes.

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File URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.127.0033
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Article provided by GENES in its journal Annals Of Economics and Statistics.

Volume (Year): (2017)
Issue (Month): 127 ()
Pages: 33-60

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Handle: RePEc:adr:anecst:y:2017:i:127:p:33-60
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  1. Pio Baake & Kay Mitusch, 2009. "Mobile phone termination charges with asymmetric regulation," Journal of Economics, Springer, vol. 96(3), pages 241-261, April.
  2. Stefan Behringer, 2012. "Asymmetric equilibria and non-cooperative access pricing in telecommunications," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(3), pages 257-281.
  3. Behringer, Stefan, 2009. "Entry, access pricing, and welfare in the telecommunications industry," Economics Letters, Elsevier, vol. 102(3), pages 185-188, March.
  4. Jullien, Bruno & Rey, Patrick & Sand-Zantman, Wilfried, 2013. "Termination fees revisited," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 738-750.
  5. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
  6. Pierre Picard, 1988. "La tarification optimale des télécommunications : une présentation synthétique," Annals of Economics and Statistics, GENES, issue 12, pages 27-62.
  7. Steffen Hoernig & Roman Inderst & Tommaso Valletti, 2014. "Calling circles: network competition with nonuniform calling patterns," RAND Journal of Economics, RAND Corporation, vol. 45(1), pages 155-175, March.
  8. 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.
  9. Peitz, Martin & Valletti, Tommaso M. & Wright, Julian, 2004. "Competition in telecommunications: an introduction," Information Economics and Policy, Elsevier, vol. 16(3), pages 315-321, September.
  10. Edmond Baranes & Cuong Vuong, 2012. "Competition with asymmetric regulation of mobile termination charges," Journal of Regulatory Economics, Springer, vol. 42(2), pages 204-222, October.
  11. Michael Carter & Julian Wright, 2003. "Asymmetric Network Interconnection," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 27-46, February.
  12. Gruber,Harald, 2005. "The Economics of Mobile Telecommunications," Cambridge Books, Cambridge University Press, number 9780521843270, March.
  13. Edmond Baranes & Cuong Huong Vuong, 2012. "Policy Implications of Asymmetric Termination Rate Regulation in Europe," Chapters,in: Regulation and the Performance of Communication and Information Networks, chapter 14 Edward Elgar Publishing.
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