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Threshold of Preference for Collusion and Interconnection Fees in Different Market Structures : the Tunisian Mobile Market Case

Author

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  • Sami Debbichi

    (AEDD - Analyse Economique et Développement Durable - UTM - Université Tunis El Manar)

  • Walid Hichri

    (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

Abstract

We present a Cournot model that compares the critical threshold of collusion in Duopoly and Oligopoly Markets where the actors are private, mixed or public. We assume that the incentive critical threshold for collusion depends on the interconnection fees. The different threshold values calculated in each Market structure are then estimated, using the OLS method, with variables related to the Tunisian market structures and prices. The Econometric estimation of the different threshold values is consistent with our theoretical results. Our findings can be used by the decision makers to control collusion, by acting on the level of interconnection fees for each market structure and by implementing the suitable market liberalization policies in this sector.

Suggested Citation

  • Sami Debbichi & Walid Hichri, 2013. "Threshold of Preference for Collusion and Interconnection Fees in Different Market Structures : the Tunisian Mobile Market Case," Working Papers halshs-00794286, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00794286
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00794286
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    References listed on IDEAS

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    1. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
    2. Dessein, Wouter, 2003. " Network Competition in Nonlinear Pricing," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 593-611, Winter.
    3. Baranes, E. & Flochel, L., 1997. "Interconnexion de reseaux et qualite de l'infrastructure comme barriere a l'entree: quels instruments de regulation?," Papiers d'Economie Mathématique et Applications 97.56, Université Panthéon-Sorbonne (Paris 1).
    4. Müller, Achim & Bögge, Hartmut & Henry, M, 2010. "Coordination chemistry under confined conditions: a simplified illustrative view," Center for Mathematical Economics Working Papers 8, Center for Mathematical Economics, Bielefeld University.
    5. Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer.
    6. Artz, Benjamin & Heywood, John S. & McGinty, Matthew, 2009. "The merger paradox in a mixed oligopoly," Research in Economics, Elsevier, vol. 63(1), pages 1-10, March.
    7. Baranes, Edmond & Poudou, Jean-Christophe, 2010. "Cost-based access regulation and collusion in a differentiated duopoly," Economics Letters, Elsevier, vol. 106(3), pages 172-176, March.
    8. Reinhard Selten, 1973. "A Simple Model of Imperfect Competition, where 4 are Few and 6 are Many," Center for Mathematical Economics Working Papers 008, Center for Mathematical Economics, Bielefeld University.
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    Cited by:

    1. Sami Debbichi & Walid Hichri, 2014. "Market Power and Collusion on Interconnection Phone Market in Tunisia : What Lessons from International Experiences," Working Papers halshs-00956638, HAL.
    2. repec:ipg:wpaper:2014-580 is not listed on IDEAS

    More about this item

    Keywords

    Interconnexion fees; Collusion; Market Structure; Private sector; Public Sector; Tunisian Mobile Market;

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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