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Competition between parallel infrastructures incorporates opposing welfare effects. The gain from reduced deadweight loss might be outweighed by the inefficient duplication of an existing infrastructure. Using data from broadband internet access for Western Europe 2000-2004, this paper...
Persistent link: https://www.econbiz.de/10014067747
We analyze the impact of mandatory access on the infrastructure iinvestments of two competing communications networks, and show that for low (high) access charges firms wait (preempt each other). Contrary to previous results, under preemption a higher access charge can delay first investment....
Persistent link: https://www.econbiz.de/10012725938
We introduce a model of asymmetric competition where two network operators with different investment costs may build an internet access infrastructure and where a virtual operator provides services through third-party access. We show that the virtual operator requests access from the low cost...
Persistent link: https://www.econbiz.de/10012004876
Recent claims that online platforms have secured permanent monopolies, protected by barriers to entry from network effects and stockpiles of data, and should be the focus of intense antitrust and regulatory scrutiny, are inconsistent with the economics, technology, and history of online...
Persistent link: https://www.econbiz.de/10012951065
In digital markets, big technology firms like Google, Microsoft, Amazon, etc., compete with each other across multiple markets. Some markets are platforms/two-sided with products offered for free to users, whereas other markets are one-sided with paid products. In some cases, market competition...
Persistent link: https://www.econbiz.de/10013295216
This article proposes a duopoly model based on a model initially introduced by Shubik and Levitan to analyze the competition based on mobility and data volume between fixed and mobile broadband access. By the description of asymmetrical characteristics of fixed and mobile broadband offers and...
Persistent link: https://www.econbiz.de/10014190807
Launching and stimulating competition in telecommunications markets is an important policy goal. It contains two elements: to encourage entry and to make competition effective such that consumers benefit. The first one requires that entrants can make profits after investing in infrastructure so...
Persistent link: https://www.econbiz.de/10011409202
Launching and stimulating competition in telecommunications markets is an important policy goal. It contains two elements: to encourage entry and to make competition effective such that consumers benefit. The first one requires that entrants can make profits after investing in infrastructure so...
Persistent link: https://www.econbiz.de/10013320606
Abstract In markets with competing interconnected networks like mobile telecommunication markets investments affect the investor’s and also any competitors’ profits. In a theoretical model it is shown that cost-reducing investments reduce the investor’s termination rates and increase...
Persistent link: https://www.econbiz.de/10003902948
European mobile communication markets are two-stage markets which are composed of the infrastructure (the network and its components) and the service markets (telephony, mobile internet, SMS). In contrast to most other network-based markets there are multiple fully integrated providers which...
Persistent link: https://www.econbiz.de/10014200074