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Market Structure, Investment and Technical Efficiencies in Mobile Telecommunications

Title: Market Structure, Investment and Technical Efficiencies in Mobile Telecommunications
Authors: Elliott, Jonathan; Houngbonon, Georges Vivien; Ivaldi, Marc; Scott, Paul T.
Contributors: Johns Hopkins University Baltimore (JHU); World Bank Group = Groupe Banque Mondiale (WBG = GBM); Toulouse School of Economics (TSE-R); Université Toulouse Capitole (UT Capitole); Communauté d'universités et établissements de Toulouse (Comue de Toulouse)-Communauté d'universités et établissements de Toulouse (Comue de Toulouse)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE); New York University New York (NYU); NYU System (NYU)
Source: ISSN: 0022-3808.
Publisher Information: CCSD; University of Chicago Press
Publication Year: 2024
Collection: Institut National de la Recherche Agronomique: ProdINRA
Subject Terms: Queuing; Mobile telecommunications; Quality; Endogenous; Infrastructure; Antitrust policy; Scale efficiency; Market structure; JEL: D - Microeconomics/D.D2 - Production and Organizations/D.D2.D22 - Firm Behavior: Empirical Analysis; JEL: L - Industrial Organization/L.L1 - Market Structure; Firm Strategy; and Market Performance/L.L1.L13 - Oligopoly and Other Imperfect Markets; JEL: L - Industrial Organization/L.L4 - Antitrust Issues and Policies/L.L4.L40 - General; [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Description: National audience ; We develop a model of competition in prices and infrastructure among mobile network operators. Although consolidation increases market power, it can lead to more efficient data transmission due to economies of scale, which we derive from physical principles. After estimating our model with French consumer and infrastructure data, equilibrium simulations reveal that while prices decrease with the number of firms, so do download speeds. Our framework also allows us to quantify the impact of spectrum allocation. The marginal social value of spectrum exceeds firms’ willingness to pay in our model as well as observed prices in spectrum auctions.
Document Type: article in journal/newspaper
Language: English
DOI: 10.1086/734132
Availability: https://hal.science/hal-04831225; https://hal.science/hal-04831225v1/document; https://hal.science/hal-04831225v1/file/wp_tse_1207.pdf; https://doi.org/10.1086/734132
Rights: https://about.hal.science/hal-authorisation-v1/ ; info:eu-repo/semantics/OpenAccess
Accession Number: edsbas.A9B3BD26
Database: BASE