The effect of asymmetry among networks on the provision charges of mobile telephone services.

• Authors: Kocsis V.
• Languages of publication: HU

Abstracts

EN

The article analyses mobile telecommunications and the asymmetric market for two-way access characteristic of it, with the aid of market-structure models. It examines whether the cost-based provision charges prescribed in the regulations offer a desirable solution in welfare terms, and if so, under what conditions. Augmenting the models in literature of the late 1990s that assumed a symmetrical market with consumer loyalty and the differing cost structures of providers, the author concludes that neither equilibrium profit of providers nor welfare is independent of the provision charges, regardless of what price structures are used. From the provider's point of view, the provision charges can offer scope for collusion. From the consumer-surplus point of view, charges higher than the provision costs are more favourable in situations closer to market entry, while in a mature market, cost-based or lower charges are more favourable.

Keywords

EN

MOBILE SERVICES; NETWORKS; PRICING; TELECOMMUNICATIONS MARKET

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2005
• Volume: 52
• Issue: 7/8
• Pages: 663-685
• Document type: ARTICLE

Contributors

author

Kocsis V.

• V. Kocsis, no address given, contact the journal editor

Identifiers

CEJSH db identifier

07HUAAAA02956009