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Product Market Competition and Lobbying Coordination in the U.S. Mobile Telecommunications Industry

  • Tomaso Duso

    ()

  • Astrid Jung

This paper empirically investigates market behavior and firms´ lobbying in a unified structural setup. In a sequential game, where firms lobby for regulation before they compete in the product market, we derive a destable measure of lobbying coordination. Applying the setting to the early U.S. cellular services industry, we find that lobbying expenditures, as measured by campaign contributions, and market conduct were consistent with a one-shot Nash equilibrium and that price caps were binding on average. Furthermore, campaign contributions from cellular firms effectively lowered the burden of the price caps and reduced production costs.

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File URL: http://hdl.handle.net/10.1007/s10842-010-0090-1
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Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 12 (2012)
Issue (Month): 2 (June)
Pages: 177-201

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Handle: RePEc:kap:jincot:v:12:y:2012:i:2:p:177-201
Contact details of provider: Web page: http://springerlink.metapress.com/link.asp?id=105724

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  12. Emanuele Taufer & Pier Luigi Novi Inverardi, 2000. "Case di riposo," Quaderni DISA 034, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Sep 2003.
  13. Teske, Paul E, 1991. " Rent-Seeking in the Deregulatory Environment: State Telecommunications," Public Choice, Springer, vol. 68(1-3), pages 235-43, January.
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  16. Baron David P., 1999. "Integrated Market and Nonmarket Strategies in Client and Interest Group Politics," Business and Politics, De Gruyter, vol. 1(1), pages 7-34, December.
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