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A price concentration study on European mobile telecom markets: Limitations and insights

Author

Listed:
  • Pauline Affeldt

    (E.CA Economics, ESMT European School of Management and Technology)

  • Rainer Nitsche

    (E.CA Economics)

Abstract

Price concentration studies investigate the relationship between market concentration and price levels. They are increasingly used in the mobile telecom industry. This paper provides a detailed account of the limitations of such studies. In addition, it proposes a specific approach in order to account for quality differences across countries, which are likely important when explaining price differences. When applying our approach to European mobile telecom markets from 2003 to 2012, we find that there is no positive relationship between concentration and prices and some indications that the relationship may be negative.

Suggested Citation

  • Pauline Affeldt & Rainer Nitsche, 2014. "A price concentration study on European mobile telecom markets: Limitations and insights," ESMT Research Working Papers ESMT-14-07, ESMT European School of Management and Technology.
    • Handle: RePEc:esm:wpaper:esmt-14-07
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    File URL: http://static.esmt.org/publications/workingpapers/ESMT-14-07.pdf
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    References listed on IDEAS

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    1. Thomas W. Hazlett & Roberto E. Muñoz, 2009. "A welfare analysis of spectrum allocation policies," RAND Journal of Economics, RAND Corporation, vol. 40(3), pages 424-454, September.
    2. Sung, Nakil & Kwon, Mi-ae, 2011. "An empirical analysis of the state of competition in OECD mobile wireless markets," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52204, International Telecommunications Society (ITS).
    3. McCloughan, Patrick & Lyons, Sean, 0. "Accounting for ARPU: New evidence from international panel data," Telecommunications Policy, Elsevier, vol. 30(10-11), pages 521-532, November.
    4. Sean Lyons, 2006. "Measuring the Benefits of Mobile Number Portability," Trinity Economics Papers tep2009, Trinity College Dublin, Department of Economics.
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    Cited by:

    1. Otello Ardovino & Marco Delmastro, 2021. "An empirical analysis of the impact of structural changes in the mobile market," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 257-274, June.
    2. Luca Aguzzoni & Benno Buehler & Luca Martile & Ron Kemp & Anton Schwarz, 2018. "Ex-post Analysis of Mobile Telecom Mergers: The Case of Austria and The Netherlands," De Economist, Springer, vol. 166(1), pages 63-87, March.
    3. Norbert Maier & Julie Runge Jørgensen & Asger Lunde & Otto Toivanen, 2021. "Ex-post Analysis of the TeliaSonera-Chess 2005 Merger," De Economist, Springer, vol. 169(2), pages 141-178, May.

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    More about this item

    Keywords

    Price concentration study; mobile; wireless; merger control; efficiencies;
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