I generalize the workhorse model of network competition (Armstrong, 1998; Laffont, Rey and Tirole, 1998a,b) to include income effects in call demand. Income effects imply that call demand depends also on the subscription fee, not only on the call price. In the standard case of differentiated...

We analyze how termination charges affect retail prices when taking into account that receivers derive some utility from a call and when firms may charge consumers for receiving calls. A novel feature of our paper is that we consider passive self-fulfilling expectations and do not allow for...

Historically, interconnection in the world of the Internet has been approached significantly differently from interconnection in the fixed Public Switched Telephone Network (PSTN) and the mobile Public Land Mobile Network (PLMN). As fixed and mobile networks evolve to Next Generation Networks...

We examine the interaction between two interconnected networks (e.g., two LECs) and a third network (e.g., an IXC) seeking access to their customer base. The IXC could either interconnect with both LECs or interconnect with only one LEC and transit calls to the other LEC via the …rst LEC’s...