Market Structure, Investment and Technical Efficiencies in Mobile Telecommunications

Jonathan Elliott, Georges Vivien Houngbonon, Marc Ivaldi and Paul Scott

No 21-1207, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We develop a model of competition in prices and infrastructure among mobile network operators. Although consolidation increases market power, it can lead to more efficient data transmission due to economies of scale, which we derive from physical principles. After estimating our model with French consumer and infrastructure data, equilibrium simulations reveal that while prices decrease with the number of firms, so do download speeds. Our framework also allows us to quantify the impact of spectrum allocation. The marginal social value of spectrum exceeds firms’ willingness to pay in our model as well as observed prices in spectrum auctions.

Keywords: Market structure; scale efficiency,; antitrust policy; infrastructure; endogenous; quality; queuing, mobile telecommunications (search for similar items in EconPapers)
JEL-codes: D22 L13 L40 (search for similar items in EconPapers)
Date: 2021-05, Revised 2024-06-26
New Economics Papers: this item is included in nep-com and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Market Structure, Investment and Technical Efficiencies in Mobile Telecommunications (2024)
Working Paper: Market Structure, Investment and Technical Efficiencies in Mobile Telecommunications (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:125551

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