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Entry, access pricing, and welfare in the telecommunications industry

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  • Behringer, Stefan

Abstract

This paper investigates the effects of entry on welfare in the Telecommunications industry. Equilibrium pricing parameters for monopoly and duopoly situations are determined where access charges are chosen non-cooperatively. Welfare comparisons between alternative access pricing regimes are also performed.

Suggested Citation

  • Behringer, Stefan, 2009. "Entry, access pricing, and welfare in the telecommunications industry," Economics Letters, Elsevier, vol. 102(3), pages 185-188, March.
  • Handle: RePEc:eee:ecolet:v:102:y:2009:i:3:p:185-188
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    References listed on IDEAS

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    1. repec:eee:ecolet:v:71:y:2001:i:3:p:413-42 is not listed on IDEAS
    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. Armstrong, M., 1996. "Network interconnection," Discussion Paper Series In Economics And Econometrics 9625, Economics Division, School of Social Sciences, University of Southampton.
    4. Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: II. Price Discrimination," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 38-56, Spring.
    5. Gans, Joshua S. & King, Stephen P., 2001. "Using 'bill and keep' interconnect arrangements to soften network competition," Economics Letters, Elsevier, vol. 71(3), pages 413-420, June.
    6. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
    7. Stefan Behringer, 2005. "Equilibrium non-reciprocal Access Pricing in the Telecommunication Industry," JEPS Working Papers 05-002, JEPS.
    8. Cambini, Carlo & Valletti, Tommaso M., 2003. "Network competition with price discrimination: 'bill-and-keep' is not so bad after all," Economics Letters, Elsevier, vol. 81(2), pages 205-213, November.
    9. Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, vol. 108(448), pages 545-564, May.
    10. Armstrong, Mark & Wright, Julian, 2007. "Mobile call termination in the UK," MPRA Paper 2344, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Edmond Baranes & Stefan Behringer & Jean-Christophe Poudou, 2017. "Mobile Access Charges and Collusion under Asymmetry," Annals of Economics and Statistics, GENES, issue 127, pages 33-60.
    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. 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.
    4. Ahmet Özçam, 2012. "The Public Policy Implications of the Persistence of a Monopoly Versus a Duopolistic Market," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 26(1), pages 67-79.

    More about this item

    Keywords

    Networks Telecommunications Competition policy Interconnection Access pricing;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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