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Network Competition with HeterogeneousCalling Patterns

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  • Wouter Dessein

Abstract

We show how differences in demand and unbalanced call flows affect considerably thepricing strategies of competing telecommunications networks and this both forcompetition in linear and nonlinear pricing. Differences in demand give also scope fortargeted entry. If networks are close substitutes, we show that an incumbent is able todeter such targeted entry on a customer segment which tends to have a net outflow ofcalls, though this is harder in nonlinear than in linear pricing. ZUSAMMENFASSUNG - (Netzwettbewerb bei heterogener Nachfrage) In dem Aufsatz wird gezeigt, wie Unterschiede in der Nachfrage und ungleichgewichtige Folgen von Telefonanrufen die Preisstrategien der im Wettbewerb stehenden Anbieter von Telekommunikationsnetzen beeinflussen. Dies gilt für den linearen und nicht linearen Preiswettbewerb. Unterschiede in der Nachfrage schaffen auch einen Spielraum für bewußte Markteintritte. Wenn Netze enge Substitute sind, dann kann gezeigt werden, daß die eingesessenen Netzanbieter im Stande sind, derartige Markteintritte in Kundensegmente zu verhindern, die durch einen Nettoüberschuß an herausgehenden Anrufen gekennzeichnet sind. Dies ist jedoch bei nicht linearer Preispolitik schwieriger als bei linearer Preispolitik.

Suggested Citation

  • Wouter Dessein, 2000. "Network Competition with HeterogeneousCalling Patterns," CIG Working Papers FS IV 00-21, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  • Handle: RePEc:wzb:wzebiv:fsiv00-21
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    Keywords

    Telecommunications; interconnection; unbalanced calling patterns; two-way access; competition policy;

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