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This article assesses the unilateral effects on prices of a merger in the Portuguese mobile telephony market. We use … marginal costs of subscription of mobile telephony. Given these estimates, we simulate the effects of the merger. We find that … the available mobile telephony subscription products are close substitutes. The merger may cause substantial price …
Persistent link: https://www.econbiz.de/10005622758
Positive network externalities can arise when consumers benefit from the consumption of compatible products by other consumers (user-positive consumption externalities) or, alternatively, when they incur costs from the consumption of incompatible products by other consumers (nonuser-negative...
Persistent link: https://www.econbiz.de/10005760645
This paper provides an insight into the antitrust investigation initiated by the French competition authority, which found that mobile operators exchanged strategic information and agreed to fix market shares in years the 2000-2002. The empirical analysis is based on the comparison of mobile...
Persistent link: https://www.econbiz.de/10005622752
This article assesses the unilateral e ects of a merger in the Portuguese mobile telephony market. We use aggregate … estimates, we simulate the e ects of the merger. The merger may result in substantial price increases, even in the presence of …
Persistent link: https://www.econbiz.de/10005622755
The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model...
Persistent link: https://www.econbiz.de/10010905457
Both theoretical and empirical evidence suggest that in markets with standards competition, strong network effects can make the strong grow stronger and, in some circumstances, even “tip” the market towards a single, winner-take-all standard. We theorize that in the presence of low cost...
Persistent link: https://www.econbiz.de/10005622731
This paper provides a thorough analysis of oligopolistic markets with positive demand-side network externalities and perfect compatibility. The minimal structure imposed on the model primitives is such that industry output increases in a firm's rivals' total output as well as in the expected...
Persistent link: https://www.econbiz.de/10008460518
simulate the effects of a hypothetical merger on prices and welfare. …
Persistent link: https://www.econbiz.de/10010615271
We discuss the case of a monopolist of a base good in the presence of a complementary good provided either by it or by another firm. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of the complementary good, i.e., the extent...
Persistent link: https://www.econbiz.de/10005622702
We discuss the case of a monopolist of a base good in the presence of complementary goods provided either by it or by other firms. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of complementary goods, i.e., the extent of...
Persistent link: https://www.econbiz.de/10005622726