Network competition with consumer switching costs: A model for the telecommunications sector

Bart van de Wielle

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: This paper gives a model for price competition under consumer switching costs in a network setting with interconnection charges. This simultaneous analysis is conducted in a discrete choice model with a multinomial logit differentiation for the customers and not in a traditional Hotelling framework. Analytical equilibrium results are derived for duopoly competition between identical Firms with both homogeneous and heterogeneous customers. A numerical method was used to study the effects of having different installed bases and to allow for the introduction of market growth.

Keywords: Switching costs; Entry; Mobile telecommunications; Market growth (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
Pages: 38 pages
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repository.uantwerpen.be/docman/irua/09f7a6/9938ba99.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:ant:wpaper:2000016

Access Statistics for this paper

More papers in Working Papers from University of Antwerp, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Joeri Nys ().