IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v43y2011i17p2155-2163.html
   My bibliography  Save this article

Screening competition in mobile telephony†

Author

Listed:
  • Lukasz Grzybowski

Abstract

This article presents a simple method for screening competition in differentiated products oligopoly with a small number of competitors. In many situations, estimation of price elasticities of demand may be impossible due to difficulties in defining demand or missing data on sales. However, even without information on price elasticities, in certain situations it is possible to test for the static noncooperative Nash-Bertrand equilibrium, which in the case of rejection, may be important screening information for antitrust authorities. The static noncooperative Nash-Bertrand equilibrium may be rejected when demand is linear and in the estimation of best-response functions, the coefficients on the competitors' prices are statistically greater than 0.5. The application of this method is illustrated by the example of German mobile telephony using monthly data between January 1998 and December 2002. According to the estimation results, the observed prices in the segment of low-users cannot be the outcome of a static noncooperative Nash-Bertrand equilibrium.

Suggested Citation

  • Lukasz Grzybowski, 2011. "Screening competition in mobile telephony†," Applied Economics, Taylor & Francis Journals, vol. 43(17), pages 2155-2163.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2155-2163
    DOI: 10.1080/00036840903153788
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153788
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840903153788?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pierre A. Buigues & Patrick Rey (ed.), 2004. "The Economics of Antitrust and Regulation in Telecommunications," Books, Edward Elgar Publishing, number 3208.
    2. Jiyoung Kim, 2006. "A Structural Analysis for Consumer's Dynamic Switching Decision in the Cellular Service Industry," Working Papers 06-24, NET Institute, revised Oct 2006.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ting Zhu & Hongju Liu & Pradeep Chintagunta, 2015. "Wireless Carriers’ Exclusive Handset Arrangements: an Empirical Look at the iPhone," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(2), pages 177-190, June.
    2. de Bijl, P.W.J. & Peitz, M., 2004. "Unbundling the Local Loop : One-Way Access and Imperfect Competition," Discussion Paper 2004-025, Tilburg University, Tilburg Law and Economic Center.
    3. Donna, Javier D., 2018. "Measuring Long-Run Price Elasticities in Urban Travel Demand," MPRA Paper 90059, University Library of Munich, Germany.
    4. de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2441, University Library of Munich, Germany.
    5. Mico, Apostolov, 2006. "Competition Policy and Market Regulation 'M1069 WORLDCOM/MCI'," MPRA Paper 29925, University Library of Munich, Germany.
    6. Carlo Cambini & Bernardo Bortolotti & Laura Rondi & Yossi Spiegel, 2007. "Capital Structure and Regulation: Does Ownership Matter?," Working Papers 2007.94, Fondazione Eni Enrico Mattei.
    7. de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2004. "Interconnected Networks," Other publications TiSEM 10a647e2-6c24-4b98-8005-e, Tilburg University, School of Economics and Management.
      • de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2005. "Interconnected Networks," Discussion Paper 2005-007, Tilburg University, Tilburg Law and Economic Center.
      • de Bijl, P.W.J. & Brunekreeft, G. & van Damme, E.E.C. & Larouche, P. & Shelkoplyas, N. & Sorana, V., 2005. "Interconnected Networks," Other publications TiSEM 2fe44772-cc8d-4be2-aff4-3, Tilburg University, School of Economics and Management.
    8. Chiraz Karamti & Lukasz Grzybowski, 2010. "Hedonic study on mobile telephony market in France: pricing–quality strategies," Netnomics, Springer, vol. 11(3), pages 255-289, October.
    9. Christian Jaag & Urs Trinkner, 2011. "A General Framework for Regulation and Liberalization in Network Industries," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 3, Edward Elgar Publishing.
    10. Arup Bose & Debashis Pal & David E. M. Sappington, 2016. "On the Merits of Antitrust Liability in Regulated Industries," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 359-392.
    11. Nicolle, Ambre, 2016. "Are consumers myopic? Evidence from handset and mobile services choices," 27th European Regional ITS Conference, Cambridge (UK) 2016 148693, International Telecommunications Society (ITS).
    12. Javier D. Donna, 2021. "Measuring long‐run gasoline price elasticities in urban travel demand," RAND Journal of Economics, RAND Corporation, vol. 52(4), pages 945-994, December.
    13. de Bijl, Paul W.J. & Peitz, Martin, 2005. "Local Loop Unbundling in Europe: Experience, Prospects and Policy Challenges," MPRA Paper 2511, University Library of Munich, Germany.
    14. Avdasheva, Svetlana & Goreyko, Nadezhda & Pittman, Russell, 2011. "Abuse of collective dominance under the competition law of the Russian Federation," MPRA Paper 33742, University Library of Munich, Germany.
    15. Carlo Cambini & Laura Rondi, 2009. "Access Regulation, Financial Structure and Investment in Vertically Integrated Utilities: Evidence from EU Telecoms," EUI-RSCAS Working Papers 68, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    16. Mark Armstrong & David E.M. Sappington, 2006. "Regulation, Competition and Liberalization," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 325-366, June.
    17. Queder, Fabian & Lehr, William & Haucap, Justus, 2020. "5G and Mobile Broadband Disruption," ITS Conference, Online Event 2020 224872, International Telecommunications Society (ITS).
    18. Pierre-André Buigues & Roderick Meiklejohn, 2011. "European Economic Integration and Network Industries," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 3, Edward Elgar Publishing.
    19. Paul de Bijl & Martin Peitz, 2006. "Broadband Access in Europe: Challenges for Policy and Regulation," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 10-15, October.
    20. Cave, Martin E. & Mariscal, Elisa V., 2020. "The impact of telecommunications regulation on less well-off Mexican households," Telecommunications Policy, Elsevier, vol. 44(4).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2155-2163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.