Calling circles: network competition with nonuniform calling patterns

A-Tier
Journal: RAND Journal of Economics
Year: 2014
Volume: 45
Issue: 1
Pages: 155-175

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

type="main"> <p>We introduce a flexible model of telecommunications network competition with nonuniform calling patterns, accounting for the fact that customers tend to make most calls to a small set of similar people. Equilibrium call prices are distorted away from marginal cost, and competitive intensity is affected by the concentration of calling patterns. Contrary to previous predictions, jointly profit-maximizing access charges are set above termination cost in order to dampen competition if calling patterns are sufficiently concentrated. We discuss implications for regulating access charges as well as on- and off-net price discrimination.

Technical Details

RePEc Handle
repec:bla:randje:v:45:y:2014:i:1:p:155-175
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25