Competition and Price Dispersion in International Long-distance Calling

Sean Ennis

Journal of Regulatory Economics, 2006, vol. 29, issue 3, 303-317

Abstract: This paper examines the relationship between changes in telecommunications provider competition on international long-distance routes and changes in prices. Overall, increased competition is associated with significantly lower prices to consumers of long-distance services. However, the relationship between competition and price varies according to the type of long-distance plan considered. For the plans frequently selected by price-conscious consumers, increased competition on a route is associated with lower prices. In contrast, for the basic international plans that are the default selection for consumers, increased competition on a route is actually associated with higher prices. Thus price dispersion appears to increase as competition increases. Copyright Springer Science+Business Media, Inc. 2006

Keywords: Telecommunications; Competition; Price dispersion; D43; L96 (search for similar items in EconPapers)
Date: 2006
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Working Paper: Competition and Price Dispersion in International Long Distance Calling (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:29:y:2006:i:3:p:303-317

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DOI: 10.1007/s11149-006-7401-9

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