English, Article, Journal or magazine article edition: Competition and mergers in networks with call externalities Concurrence et fusions entre réseaux avec externalités d’appels Edmond Baranes; Laurent Flochel

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Bookmark: http://trove.nla.gov.au/version/200243
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Competition and mergers in networks with call externalities Concurrence et fusions entre réseaux avec externalités d’appels
Author
  • Edmond Baranes
  • Laurent Flochel
Physical Description
  • preprint
Notes
  • This paper considers a model of two interconnected networks with different qualities. There are call externalities in the sense that consumers value calls they send and receive. Networks compete in two part tariffs. We show that call externalities create private incentives for each competitor to charge low access prices. This result moderates the risk of tacit collusion when competitors can freely negotiate their access charges. We also analyze the case of a merger between the two networks and give conditions under which the merger can be welfare improving.
  • call externalities, interconnection, mergers, telecommunications
  • RePEc:gat:wpaper:0308
Language
  • English
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