Estimating Possible Subsidy Effects in Broadband Services and Deployment

Mohammad Ali Mohammadi ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this work, the dynamic competition between firms providing internet services is studied. The framework is Markov equilibrium whereby structural parameters are obtained using two-step estimations, allowing for analyzing the situation in case of subsidies for service upgrade. The results show that such subsidy has little effect on the number of firms while increasing the number of fast firms.

Keywords: Structural estimation; dynamic competition; Markov perfect equilibrium; investment in Internet provision; subsidies (search for similar items in EconPapers)
JEL-codes: C73 L13 L50 L86 (search for similar items in EconPapers)
Date: 2021-07-31
New Economics Papers: this item is included in nep-com, nep-gth, nep-ict and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111962

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