Title
Network competition with consumer switching costs: a model for the telecommunication sector
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerpen , [*]
Source (series)
Research paper / Faculty of Applied Economics UFSIA-RUCA ; 2000:016
Volume/pages
39 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
This paper gives a model for price competition under consumer switching costs in a network setting with interconnection charges. This simultaneous analysis is conducted in a discrete choice model with a multinomial logit di¤erentiation for the customers and not in a traditional Hotelling framework. Analytical equilibrium results are derived for duopoly competition between identical rms with both homogeneous and heterogeneous customers. A numerical method was used to study the e¤ects of having di¤erent installed bases and to allow for the introduction of market growth.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/09f7a6/9938ba99.pdf
Handle