| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078027 | International Journal of Industrial Organization | 2012 | 12 Pages |
Abstract
⺠We analyze the effects of reducing termination charge below cost on penetration. ⺠It softens competition but helps to internalize network externality. ⺠If the first effect dominates, above cost termination charges promote penetration. ⺠This happens when the market is mature or wireless networks are weak substitutes. ⺠A retail benchmarking approach promotes penetration without distorting call volume.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Sjaak Hurkens, Doh-Shin Jeon,