The Economics of Number Portability: Switching Costs and Two-Part Tariffs
This paper interprets number portability as a reduction of switching costs in a model of competition between telephone companies. We identify several cases by their cost and demand characteristics and show that social benefit of number portability are not guaranteed. Analysis using two-part tariff highlights the effect of how the technological cost of switching cost reduction effects the final market allocation.
|Date of creation:||Aug 2010|
|Date of revision:|
|Note:||Originally Aoki, R., Small, J. "The Economics of Number Portability: Switching Costs and Two Part Tariffs". CRNEC Working Paper, University of Auckland, 1999.|
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- Spulber, Daniel F, 1981. "Spatial Nonlinear Pricing," American Economic Review, American Economic Association, vol. 71(5), pages 923-33, December.
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- Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
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