Competition between multiple asymmetric networks: theory and applications

Steffen Hoernig

doi:10.1016/j.ijindorg.2013.11.002

Competition between multiple asymmetric networks: theory and applications

Steffen Hoernig

NOVA School of Business and Economics (NOVA SBE)

Research output: Contribution to journal › Article › peer-review

13 Citations (Scopus)

Abstract

This paper presents a tractable model of network competition with many firms, elastic subscriber demand, off-net price discrimination, call externalities, and cost and market share asymmetries. We characterize stability in expectations and equilibrium under firm- and market-level network effects. The model is applied to simulate the effects of termination rates, market maturity, and retail pricing strategies. We show that predictions based on duopoly models can be misleading, in particular concerning the effects of termination rates.

Original language	English
Pages (from-to)	57-69
Number of pages	13
Journal	International Journal of Industrial Organization
Volume	32
Issue number	1
DOIs	https://doi.org/10.1016/j.ijindorg.2013.11.002
Publication status	Published - 1 Jan 2014

Keywords

Asymmetry
Elastic demand
Mobile termination rates
Multiple networks
On-/off-net pricing
Telecommunications network competition

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10.1016/j.ijindorg.2013.11.002

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KW - On-/off-net pricing

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Competition between multiple asymmetric networks: theory and applications

Abstract

Keywords

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