Endogenous Sunk Costs in the Market for Mobile Telecommunications - The Role of Licence Fees
An oligopoly model with endogenous sunk costs illustrates the trade off between ex ante extraction of oligopoly rents and market entry of firms in the mobile telecommunications industry. Competitive bidding for radio frequency licences provides scope for setting market structure endogenously - the higher the licence fee, the lower the number of competitive firms sustained by the market. High licence fees may be a signal for post-entry collusion.
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.:
- repec:dgr:kubcen:200053 is not listed on IDEAS
- Klemperer, Paul, 2000.
"What Really Matters in Auction Design,"
CEPR Discussion Papers
2581, C.E.P.R. Discussion Papers.
- Offerman, T.J.S. & Potters, J.J.M., 2000. "Does Auctioning of Entry Licences Affect Consumers Prices? An Experimental Study," Discussion Paper 2000-53, Tilburg University, Center for Economic Research.
- repec:dgr:uvatin:20000046 is not listed on IDEAS
- John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
- Cramton, Peter C, 1995.
"Money Out of Thin Air: The Nationwide Narrowband PCS Auction,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 4(2), pages 267-343, Summer.
- Peter Cramton, 1995. "Money Out of Thin Air: The Nationwide Narrowband PCS Auction," Papers of Peter Cramton 95jems, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
- Gruber, Harald & Verboven, Frank, 2000.
"The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications,"
CEPR Discussion Papers
2440, C.E.P.R. Discussion Papers.
- Gruber, Harald & Verboven, Frank, 2001. "The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1189-1212, July.
- GRUBER, Harald & VERBOVEN, Frank, . "The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications," Working Papers 1999038, University of Antwerp, Faculty of Applied Economics.
- S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
- Gruber, Harald, 1999. "An investment view of mobile telecommunications in the European Union," Telecommunications Policy, Elsevier, vol. 23(7-8), pages 521-538, August.
When requesting a correction, please mention this item's handle: RePEc:eso:journl:v:33:y:2002:i:1:p:55-64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frank Walsh)
If references are entirely missing, you can add them using this form.