In theory, network profits are independent of the reciprocal termination rates when operators charge nondiscriminatory call prices (Laffont, Rey and Tirole, 1998). Additionally, termination rates can be used to subsidize subscriber acquisition cost. This issue is typically known as a "waterbed...

The common aim of legislation in the field of competition and consumer protection is to ensure the consumers’ sovereignty and well-being. Based on the analysis of literature in this field we have established, as the main focus of our research, a study of the correlation between the degree of...

We study the dual relationship between market structure and prices and between market structure and investment in mobile telecommunications. Using a uniquely constructed panel of mobile operators’ prices and accounting information across 33 OECD countries between 2002 and 2014, we document...

We explore the existence of first mover advantages in mobile telecommunications markets. Building on a data set comprising monthly penetration rates, market concentration, number of active operators, and market shares of 90 followers from 33 OECD countries, we estimate a dynamic growth model....

This paper analyses the pattern and rate of adoption of mobile telephones by the Portuguese population. It is shown that the pattern of diffusion is S-shaped and is consistent with a logistic function, which describes a symmetrical growth process. Furthermore, it is found that 67 percent of the...

How does the choice to regulate a market take place? And how does regulation influence market outcome? We argue that to explicitly model the simultaneity between these two issues makes a qualitative difference in the analysis of the role of regulation, and empirically test our model in the U.S....

This paper argues that the study of policy incidence in industrial organization needs to take the endogeneity of government into account. The point is made by investigating whether political considerations are important in terms of understanding the causes and effects of deregulation using data...

This paper develops a political-economy model of price regulation. Firms' lobbying activity for a given regulatory status might generate a simultaneity problem between the effects and the determinants of regulatory decisions. We explicitly model this two way causality, and empirically test our...

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...

A few recent contributions have claimed that in high-tech industries—where innovation is often cumulative and products include many components which are protected by patents in the hands of many different patent holders—the cost of obtaining all necessary licenses is too high. Some have even...