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How do mobile-voice operators compete? IVQR estimates

Author

Listed:
  • Corrado Andini
  • Ricardo Cabral

Abstract

This article proposes a novel procedure to test whether firms compete à la Cournot or perfectly collude when firms' conduct is allowed to be heterogeneous along the conditional distribution of price–cost margins. We apply the procedure to a panel of quarterly data for 177 mobile-voice operators in 45 countries from 1999:1 to 2004:2. Particularly, we find that the hypothesis of perfect collusion can be rejected even for very high-margin operators while the hypothesis that very low-margin operators compete à la Cournot cannot be rejected.

Suggested Citation

  • Corrado Andini & Ricardo Cabral, 2013. "How do mobile-voice operators compete? IVQR estimates," Applied Economics Letters, Taylor & Francis Journals, vol. 20(1), pages 18-22, January.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:1:p:18-22
    DOI: 10.1080/13504851.2012.669455
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    References listed on IDEAS

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