Equilibrium non-reciprocal Access Pricing in the Telecommunication Industry
This paper looks at competition in the telecommunication industry. We determine the equilibrium pricing parameters for a duopoly situation with a particular emphasis on the role of competitively chosen non-reciprocal access prices. In the symmetric equilibrium the networks optimally choose positive access charge markups which reconciles empirical observation with the theoretical economics literature.
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References listed on IDEAS
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- Armstrong, Mark, 2001. "The theory of access pricing and interconnection," MPRA Paper 15608, University Library of Munich, Germany.
- Armstrong, Mark, 1998. "Network Interconnection in Telecommunications," Economic Journal, Royal Economic Society, vol. 108(448), pages 545-564, May.