Competition vs. Regulation in Mobile Telecommunications

Johan Stennek and Thomas Tangerås ()

No 6073, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show that the monopolistic outcome prevails independently of market concentration when access prices are determined in bilateral negotiations. A light-handed regulatory policy can induce effective competition. Call prices are close to the marginal cost if the networks are sufficiently close substitutes. Neither demand nor cost information is required. A unique and symmetric call price equilibrium exists under symmetric access prices, provided that call demand is sufficiently inelastic. Existence encompasses the case of many networks and high network substitutability.

Keywords: access price competition; entry; network competition; network substitutability; regulation; two-way access (search for similar items in EconPapers)
JEL-codes: L51 L96 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cse, nep-mic, nep-net and nep-reg
Date: 2007-02
View list of references

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP6073.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Competition vs. Regulation in Mobile Telecommunications (2006)
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: http://EconPapers.repec.org/RePEc:cpr:ceprdp:6073

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP6073.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().