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Title
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Network competition with consumer switching costs: a model for the telecommunication sector
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Author
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Abstract
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| 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. |
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Language
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English
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Source (series)
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Research paper / Faculty of Applied Economics UFSIA-RUCA ; 2000:016
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Publication
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Antwerpen
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2000
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Volume/pages
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39 p.
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Full text (open access)
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