Network Competition: II. Price Discrimination
研究竞争性网络运营商在允许对网内和网外通话收取不同价格时的竞争行为,发现这种价格歧视会显著改变行业成熟期和进入期的竞争性质。
Our companion article developed a clear conceptual framework of negotiated or regulated interconnection agreements between rival operators and studied competition between interconnected networks, under the assumption of nondiscriminatory pricing. This article relaxes this assumption and allows networks to charge different prices for calls terminating on the subscriber's network and those terminating on a rivals network. This creates a price differential between services that are identical for the consumer and generates network externalities despite network interconnection. We show that in both the mature and entry phases of the industry, the nature of competition is substantially affected by such price discrimination.