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Intense Network Competition

Authors: Stennek, Johan - Gothenburg University and CEPR
Tangeras, Thomas P. - Research Institute of Industrial Economics
Keywords: network competition; two-way access; mobile termination
Issue Date: 2008
Series/Report no.: Net Institute Working Paper;08-36
Abstract: First, we demonstrate how unregulated price setting in mobile telecommunications may lead to monopolization, even when networks are highly substitutable. Second, we demonstrate that a menu of structural rules, including (i) mandatory interconnection, (ii) reciprocal access prices and (iii) a ban on price discrimination of calls to other networks may restore competition. This regulation requires neither demand data nor information about call costs.
Appears in Collections:NET Institute Working Papers Series

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