Price structures in the market for long-distance voice telephony in Germany

Gert Brunekreeft and Wolfgang Gross

No 61, Discussion Papers from University of Freiburg, Institute for Transport Economics and Regional Policy

Abstract: This paper analyses price structures in the liberalized German market for long-distance telecommunications services. Theoretically deduced patterns are backed-up by empirical observations. The market is exceptionally competitive; entry is taking place on a large scale and prices are falling sharply. The product is strongly homogeneous and search costs are extremely low. Propositions included in the assessment concern the necessary absence of systematic price discrimination, the probability of cut-throat competition, and the necessary presence of a demand-compatible peak-load structure. With respect to the latter there is an observable move of the price structure, which can be explained by regulatory failure.

Keywords: telecommunications; price discrimination; peak-load pricing (search for similar items in EconPapers)
JEL-codes: D41 L43 L96 (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/47634/1/271381396.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:aluivr:61

Access Statistics for this paper

More papers in Discussion Papers from University of Freiburg, Institute for Transport Economics and Regional Policy Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().