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,...

Previous research has argued that, in the mature phase of competition,telecommunications networks may use access charges as an instrument of collusion. Weshow that this result depends totally on the assumption of linear pricing. Though undernonlinear pricing, the access charge alters the way...