Duopoly and competition: The case of American cellular telephone

Hugh S Fullerton

Telecommunications Policy, 1998, vol. 22, issue 7, 593-607

Abstract: The designation of local duopoly mar ket structure for the American cellular telephone industry offers an unusual opportunity to observe the relationship of duopoly and market performance. A study of the first 28 markets to offer cellular service in the United States found that forms of competitive behav iour were evident in every market, but the intensity of competition varied widely. In nearly every market, prices declined during the six-year period. Although duopoly appears to have facil itated price competition, the wide vari ation in performance from market to market indicates that factors other than market structure strongly influence the behaviour of the firm.

Date: 1998
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