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We re-examine the literature on mobile termination in the presence of network externalities. Externalities arise when firms discriminate between on- and off-net calls or when subscription demand is elastic. This literature predicts that profit decreases and consumer surplus increases in...
Persistent link: https://www.econbiz.de/10008592876
We extend Jackson and Watts's (2002) result on the coincidence of S-stochastically stable and core stable networks from …
Persistent link: https://www.econbiz.de/10005582656
networks. Moreover, the payoffs received by the agents coincide with their Shapley value in an appropriately defined …
Persistent link: https://www.econbiz.de/10005247843
In this paper, we consider two classes of economic environments. In the first type, agents are faced with the task of providing local public goods that will benefit some or all of them. In the second type, economic activity takes place via formation of links. Agents need both to both form a...
Persistent link: https://www.econbiz.de/10005247858
We study a retail benchmarking approach to determine access prices for interconnected networks. Instead of considering … network i pays to network j as a linear function of the marginal costs and the retail prices set by both networks. In the case …
Persistent link: https://www.econbiz.de/10005168477
In this paper, we study how access pricing affects network competition when subscription demand is elastic and each network uses non-linear prices and can apply termination-based price discrimination. In the case of a fixed per minute termination charge, we find that a reduction of the...
Persistent link: https://www.econbiz.de/10005082670