Showing 121 - 130 of 150
Persistent link: https://www.econbiz.de/10005753178
We consider some two dynamic models of entry in mobile telephony, with and without strategic pricing, and taking into account market penetration at entry, locked-in consumers and tariff-mediated network externalities. We show that on/off-net differentials may reduce the possibility of entry if...
Persistent link: https://www.econbiz.de/10005585489
We analyze how sharing rules affect Nash equilibria in Bertrand games, where the sharing of profits at ties is a decisive assumption. Necessary conditions for either positive or zero equilibrium profits are derived. Zero profit equilibria are shown to exist under weak conditions if the sharing...
Persistent link: https://www.econbiz.de/10005600463
We prove the existence of symmetric pure Cournot equilibria with heterogeneous goods under the following condition: each firm reacts to a rise in competirors output in such a way that its market price does not rise. This condition is not related to wether goods are strategic substitutes or...
Persistent link: https://www.econbiz.de/10005600472
Competition authorities must pay attention to many industries simultaneously. Sectoral regulators concentrate on their own industry. Often both types of authority may intervene in specific industries and there is an overlap of jurisdictions. We show how a competition authority’s resource...
Persistent link: https://www.econbiz.de/10005652353
We consider a market where consumers mix content offered by different firms. We show how tariff structures have an impact on firms' profits and efficiency. As compared to pure linear pricing, when firms charge two-part tariffs they make higher profits, while consumers are worse off and the...
Persistent link: https://www.econbiz.de/10005694987
This paper presents a tractable model of network competition with many firms, elastic subscriber demand, off-net price discrimination, call externalities, and cost and market share asymmetries. We characterize stability in expectations and equilibrium under firm- and market-level network...
Persistent link: https://www.econbiz.de/10010738079
In Europe Mobile Termination Rates (MTR) are being subject to reduction to reflect actual costs, marginal or incremental, of calls termination in mobiles nets. This is considered as an intermediate step to adopt the “bill-and-keep” system. Other countries around the globe, such as New...
Persistent link: https://www.econbiz.de/10010684129
We show that the prediction of strategic connectivity breakdowns under a receiving-party-pays system and discrimination between on and off-net prices does not hold up once more than two mobile networks are considered. Indeed, if there are at least three competing networks and enough utility is...
Persistent link: https://www.econbiz.de/10010775661
Our market modelling approach aims at practically determining wholesale pricing policies for the switch from copper to fibre access networks. It asks which market equilibria for incumbents and entrants result from different combinations of copper and fibre wholesale access charges. We first...
Persistent link: https://www.econbiz.de/10010781531