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Asymmetric equilibria and non-cooperative access pricing in telecommunications

Author

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  • Stefan Behringer

Abstract

This paper looks at competition in the telecommunications industry with non-linear tariffs and network-based price discrimination. Allowing for asymmetric networks and non-cooperatively chosen access prices simultaneously allows to explicitly derive non-reciprocal equilibrium access price choices that are above the efficient level and thus reconcile theory with regulatory practice.

Suggested Citation

  • 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.
    • Handle: RePEc:ids:ijmnec:v:2:y:2012:i:3:p:257-281
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    References listed on IDEAS

    as
    1. Mark Armstrong & Julian Wright, 2009. "Mobile Call Termination," Economic Journal, Royal Economic Society, vol. 119(538), pages 270-307, June.
    2. Behringer, Stefan, 2009. "Entry, access pricing, and welfare in the telecommunications industry," Economics Letters, Elsevier, vol. 102(3), pages 185-188, March.
    3. Hoernig, Steffen, 2007. "On-net and off-net pricing on asymmetric telecommunications networks," Information Economics and Policy, Elsevier, vol. 19(2), pages 171-188, June.
    4. Patrice Geoffron & Haobo Wang, 2008. "What is the mobile termination regime for the asymmetric firms with a calling club effect?," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 1(1), pages 58-79.
    5. Dessein, Wouter, 2003. "Network Competition in Nonlinear Pricing," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 593-611, Winter.
    6. Ralf Dewenter & Justus Haucap, 2005. "The Effects of Regulating Mobile Termination Rates for Asymmetric Networks," European Journal of Law and Economics, Springer, vol. 20(2), pages 185-197, September.
    7. Stefan Behringer, 2005. "Equilibrium non-reciprocal Access Pricing in the Telecommunication Industry," JEPS Working Papers 05-002, JEPS.
    8. Jullien, Bruno & Rey, Patrick & Sand-Zantman, Wilfried, 2009. "Mobile Call Termination Revisited," TSE Working Papers 10-198, Toulouse School of Economics (TSE), revised Aug 2010.
    9. Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
    10. Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, vol. 108(448), pages 545-564, May.
    11. Armstrong, Mark & Wright, Julian, 2007. "Mobile call termination in the UK," MPRA Paper 2344, University Library of Munich, Germany.
    12. 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.
    13. Michael Carter & Julian Wright, 2003. "Asymmetric Network Interconnection," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 27-46, February.
    14. repec:dau:papers:123456789/79 is not listed on IDEAS
    15. 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.
    16. repec:dau:papers:123456789/11246 is not listed on IDEAS
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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. Edmond Baranes & Cuong Huong Vuong, 2012. "Policy Implications of Asymmetric Termination Rate Regulation in Europe," Chapters, in: Gerald R. Faulhaber & Gary Madden & Jeffrey Petchey (ed.), Regulation and the Performance of Communication and Information Networks, chapter 14, Edward Elgar Publishing.
    3. Behringer, Stefan, 2009. "Entry, access pricing, and welfare in the telecommunications industry," Economics Letters, Elsevier, vol. 102(3), pages 185-188, March.

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    More about this item

    Keywords

    asymmetric networks; telecommunications industry; competition policy; access pricing; regulation; non-cooperative pricing; nonlinear tariffs; price discrimination; regulatory practice.;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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