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In this article I analyze the effects of a recent reform intended to decrease switching costs in the cellular industry. The reform, implemented in Chile in 2012, allowed cell phone users to switch operators without any contract restriction while keeping their wireless number. Its aim was the...
Persistent link: https://www.econbiz.de/10010905460
. Existence encompasses the case of many networks and high network substitutability. … cost if the networks are sufficiently close substitutes. Neither demand nor cost information is required. A unique and …
Persistent link: https://www.econbiz.de/10005622696
networks are highly substitutable. Second, we demonstrate that a menu of structural rules, including (i) mandatory … interconnection, (ii) reciprocal access prices and (iii) a ban on price discrimination of calls to other networks, may restore …
Persistent link: https://www.econbiz.de/10005622765
network i pays to network j as a linear function of the marginal costs and the retail prices set by both networks. In the case …We study a retail benchmarking approach to determine access prices for interconnected networks. Instead of considering … additional objectives such as consumer surplus, network coverage or investment: in particular, we show that the regulator can …
Persistent link: https://www.econbiz.de/10005585477
We study how access pricing affects network competition when consumers' subscription demand is elastic and networks … internalize network externalities. The former reduces consumer surplus while the latter increases it. Firms always prefer … termination charge below cost, either to soften competition or to internalize the network effect. The regulator will favor …
Persistent link: https://www.econbiz.de/10005622706
In this paper we study the implications of service level guarantees (SLGs) in a model of oligopoly competition where providers compete to deliver a service to congestion-sensitive consumers. The SLG is a contractual obligation on the part of the service provider: regardless of how many customers...
Persistent link: https://www.econbiz.de/10005184809
information may be a barrier to the development of a health information network. Health information networks are designed to … over $30 billion to support the development of health information networks and electronic health information sharing … enter a health information network given this potential loss of competitive advantage. Guided by implications of the model …
Persistent link: https://www.econbiz.de/10010961657
network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is … consumers whose price-elasticity of demand is large relative to their valuation for network externalities. Finally, we show how … the network's value. …
Persistent link: https://www.econbiz.de/10010934839
Amazon.com. Viewing each product as having a unique position in a hyperlinked network of recommendations between product that … recommendation network position by using a variant of Google’s PageRank measure of centrality. We then associate the average level of … network influence on each category with the inequality in the distribution of its demand and revenue, quantifying this …
Persistent link: https://www.econbiz.de/10005040808
This paper studies whether competition may induce firms abandoning deceptive pricing strategies aimed to profit from mistaken choices of consumers. The empirical analysis focuses on the pricing practices of early U.S. cellular firms, both under monopoly and duopoly. Foggy tariff options are...
Persistent link: https://www.econbiz.de/10005459408