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Author:Laffont, J.-J.
Rey, P.
Tirole, J.
Title:Network competition: II. Price discrimination
Journal:RAND Journal of Economics
1998 : SPRING, VOL. 29:1, p. 38-56
Index terms:NETWORKS
COMPETITION
PRICE DISCRIMINATION
Language:eng
Abstract:The authors' 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 rival's network. This creates a price differential between services that are identical for the consumer and generates network externalities despite network interconnection.
SCIMA record nr: 179937
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