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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28465
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| Title: | Merger Simulation in Mobile Telephony in Portugal |
| Authors: | Grzybowski, Lukasz - University of Alicante
Pereira, Pedro - Autoridade da Concorrencia |
| Keywords: | mobile telephony, merger simulation, nested logit, network eects, lock-in |
| Issue Date: | 2006 |
| Series/Report no.: | NET Institute Working Paper;06-22 |
| Abstract: | This article assesses the unilateral e ects on prices of a merger in the
Portuguese mobile telephony market. We use aggregate quarterly data from
1999 to 2005 and a nested logit model to estimate the price elasticities
of demand and the marginal costs of subscription of mobile telephony.
Given these estimates, we simulate the e ects of the merger. We nd that
the available mobile telephony subscription products are close
substitutes. The merger may cause substantial price increases, even in
the presence of large cost e ciencies. On average, prices increase by 7%
without cost e ciencies, and by about 6% with a 10% marginal cost reduction. |
| URI: | http://hdl.handle.net/2451/28465 |
| Appears in Collections: | NET Institute Working Papers Series
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