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Significant Market Power in Telecommunications: Theoretical and Practical Aspects


  • Paul J.J. Welfens

    () (Europäisches Institut für Internationale WIrtschaftsbeziehungen (EIIW))


From an economic perspective efficiency and innovation are crucial aspects of functional competition in telecommunications where one has to take into account sector specific problems. Besides those specific aspects we consider the topic of significant market power and its evolution. As a special problem we focus on product bundling issues and aspects of network dynamics. As regards policy conclusions there is need for differentiated approaches. We emphasize the need for a dynamic perspective of competition in telecommunications markets. With respect to oligopolistic markets we present as a theoretically new approach an application of the Hitch-Sweezy model of competition - the implication is that (price)regulation should be restricted to a very small field.

Suggested Citation

  • Paul J.J. Welfens, 2005. "Significant Market Power in Telecommunications: Theoretical and Practical Aspects," EIIW Discussion paper disbei131, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:eiiwdp:disbei131

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    References listed on IDEAS

    1. Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, pages 215-246.
    2. Welfens, Paul JJ, 1995. "Telecommunications and transition in Central and Eastern Europe," Telecommunications Policy, Elsevier, pages 561-577.
    3. Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, pages 215-246.
    4. Yannis Bakos & Erik Brynjolfsson, 1999. "Bundling Information Goods: Pricing, Profits, and Efficiency," Management Science, INFORMS, pages 1613-1630.
    5. Bart van Ark, 2001. "The Renewal of the Old Economy: An International Comparative Perspective," OECD Science, Technology and Industry Working Papers 2001/5, OECD Publishing.
    6. Yannis Bakos & Erik Brynjolfsson, 1997. "Bundling Information Goods: Pricing, Profits and Efficiency," Working Paper Series 199, MIT Center for Coordination Science.
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    Cited by:

    1. Paul J.J. Welfens, 2005. "Schattenregulierung in der Telekommunikationswirtschaft," EIIW Discussion paper disbei137, Universitätsbibliothek Wuppertal, University Library.
    2. Paul J.J. Welfens, 2006. "Digitale Innovationen, Neue Märkte und Telekomregulierung," EIIW Discussion paper disbei142, Universitätsbibliothek Wuppertal, University Library.

    More about this item


    Telecommunications; market power; network economies;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications


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