Hoernig, Steffen; Inderst, Roman; Valletti, Tommaso - C.E.P.R. Discussion Papers - 2010
We introduce a flexible model of telecommunications network competition with non-uniform calling patterns, which … away from marginal cost, and competitive intensity is affected by the concentration of calling patterns. Contrary to …, and the resulting on-net prices are below off-net prices, if calling patterns are sufficiently concentrated. …