Arbeitspapier

Network Asymmetries and Access Pricing in Cellular Telecommunications

Network shares and retail prices are not symmetric in the telecommunications market with multiple bottlenecks which give rise to new questions of access fee regulation. In this paper we consider a model with two types of asymmetry arising from different entry timing, i.e. a larger reputation for the incumbent and lower cost of servicing for the entrant as a result of more advanced technology. As a result firms have divergent preferences over the access fee. In case of linear and non-linear prices the access fee might still act as the instrument of collusion, but only if a side-payment is permitted which is generally welfare decreasing. Moreover, in contrast with the European regulatory framework, the access fee on the basis of termination cost might not necessarily be a socially preferable solution.

Sprache
Englisch

Erschienen in
Series: Tinbergen Institute Discussion Paper ; No. 05-085/1

Klassifikation
Wirtschaft
Production, Pricing, and Market Structure; Size Distribution of Firms
Oligopoly and Other Imperfect Markets
Economics of Regulation
Telecommunications
Thema
cost asymmetry
brand loyalty
imperfect competition
network interconnection
access fee

Ereignis
Geistige Schöpfung
(wer)
Kocsis, Viktória
Ereignis
Veröffentlichung
(wer)
Tinbergen Institute
(wo)
Amsterdam and Rotterdam
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kocsis, Viktória
  • Tinbergen Institute

Entstanden

  • 2005

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