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How do mobile-voice operators compete? IVQR estimates

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  • 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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    1. Thornton Matheson & Patrick Petit, 2021. "Taxing telecommunications in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(1), pages 248-280, February.
    2. Massimiliano Agovino Author-Email: agovino.massimo@gmail.com & Antonio Garofalo Author-Email: antonio.garofalo@uniparthenope.it, 2016. "The Impact of Education on Wage Determination between Workers in Southern and Central-Northern Italy," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(1), pages 25-43, March.

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