network effects, increase in the value of consuming a product if many other consumers use the same product, is a feature of many markets of high-technology products. frequently cited examples of products exhibiting network effects are telecommunication or software products. this research explores the role of network effects in the consumer´s choice of mobile operator in tehran. for our empirica...

This paper explores the role of network effects in the consumer’s choice of mobile phone operator in the UK. For our empirical analysis we use two sources of data: market-level data from OFCOM and micro-level data on consumers’ usage of mobile telephones from the survey Home Online. We estimate two classes of models which illustrate the role of network effects. The first is a model of the compa...

The differential between on-net and off-net prices, for example on mobile telephony networks, is hotly debated between telecoms operators and regulators. Small operators contend that their competitors’ high off-net prices are anticompetitive. We show that if the utility of receiving calls is taken into account, the equilibrium pricing structures will indeed depend on firms’ market shares. Large...

The new document " Approach on appropriate remedies in the new regulatory framework " (2004) jointly published by ERG and EU, identifies, among several competition problems related to the market of mobile telephony, the strategy of price discrimination between on net and off net calls. Through such strategy the incumbents could get a competitive advantage because the price discrimination can re...

We re-examine the literature on mobile termination in the presence of network externalities. Externalities arise when firms discriminate between onand off-net calls or when subscription demand is elastic. This literature predicts that profit decreases and consumer surplus increases in termination charge in a neighborhood of termination cost. This creates a puzzle since in reality we see regulat...