EconPapers    
Economics at your fingertips  
 

Calling Circles: Network Competition with Non-Uniform Calling Patterns

Steffen Hoernig, Roman Inderst and Tommaso Valletti

No 206, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: We introduce a flexible model of telecommunications network competition with non-uniform calling patterns, which account for the fact that customers tend to make most calls to a small set of contacts. Equilibrium call prices are distorted away from marginal cost, and competitive intensity is affected by the concentration of calling patterns. Contrary to previous predictions, jointly profit-maximizing access charges are set above termination cost in order to dampen competition, and the resulting on-net prices are below off-net prices, if calling patterns are sufficiently concentrated. We discuss implications for regulating access charges as well as on- and off-net price discrimination.

Keywords: Network competition; non-uniform calling patterns; termination charge (search for similar items in EconPapers)
JEL-codes: L13 L51 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-07-04, Revised 2011-07-04
New Economics Papers: this item is included in nep-com and nep-net
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://ceistorvergata.it/RePEc/rpaper/RP206.pdf Main text (application/pdf)

Related works:
Journal Article: Calling circles: network competition with nonuniform calling patterns (2014) Downloads
Working Paper: Calling Circles: Network Competition with Non-Uniform Calling Patterns (2010) Downloads
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:rtv:ceisrp:206

Ordering information: This working paper can be ordered from
CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
https://ceistorvergata.it
segr.ceis@economia.uniroma2.it

Access Statistics for this paper

More papers in CEIS Research Paper from Tor Vergata University, CEIS CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma. Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Piazzi (piazzi@ceis.uniroma2.it).

 
Page updated 2024-12-26
Handle: RePEc:rtv:ceisrp:206