Elliott, Jonathan, Houngbonon, Georges Vivien, Ivaldi, Marc and Scott, Paul (2023) Market structure, investment and technical efficiencies in mobile telecommunications. TSE Working Paper, n. 21-1207, Toulouse.

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We develop a model of competition in prices and infrastructural investment among mobile network providers. Market shares and service quality (download speed) are simultaneously determined, for demand affects the network load just as delivered quality affects consumer demand. While consolidation typically has adverse impacts on consumer surplus, economies of scale (which we derive from physical principles) push in the other direction, and we find that consumer surplus is maximized at a moderate number of firms, and that the optimal number of firms is higher for lower income consumers. Our modeling framework allows us to quantify the marginal social value of allocating more spectrum to mobile telecommunications, finding it is roughly five times an individual firm’s willingness to pay for a marginal unit of spectrum.

Item Type: Monograph (Working Paper)
Language: English
Date: 25 April 2023
Place of Publication: Toulouse.
Uncontrolled Keywords: Market structure, scale efficiency,, antitrust policy, infrastructure, endogenous, quality, queuing, mobile telecommunications
JEL Classification: D21 - Firm Behavior
L13 - Oligopoly and Other Imperfect Markets
L40 - General
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 06 May 2021 15:40
Last Modified: 27 Apr 2023 11:25
OAI Identifier: oai:tse-fr.eu:125551
URI: https://publications.ut-capitole.fr/id/eprint/43492
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