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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/10008478789
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/10008495950
This article analyzes competition between two asymmetric networks, an incumbent and a new entrant. Networks compete in …
Persistent link: https://www.econbiz.de/10008461358
I consider a dynamic model of competition between two proprietary networks. Consumers die and are replaced with a … (e.g., larger networks set higher prices), c) network size dynamics (increasing dominance vs. reversion to the mean), and …
Persistent link: https://www.econbiz.de/10008463047
Strategy in low-income markets is a new but emerging field of international strategy research. Because low-income markets remain largely unexplored and unknown to most companies, it has been argued that developing embedded ties and alliances with traditional and non-traditional partners is...
Persistent link: https://www.econbiz.de/10005053692
Traditionally alliances have been left at of industry analysis. We have been focusing basically on the economic characteristics determining bargaining power on the relationships between the actors in a value system. The paper proposes a methodology to analyze industries from a very different...
Persistent link: https://www.econbiz.de/10005057487