English
Ciência-IUL
Publicações
Descrição Detalhada da Publicação
Merger simulation in mobile telephony in Portugal
Título Revista
Review of Industrial Organization
Ano (publicação definitiva)
2007
Língua
Inglês
País
Reino Unido
Mais Informação
Web of Science®
Scopus
Google Scholar
Abstract/Resumo
This article assesses the unilateral effects on prices of a merger in the Portuguese mobile telephony market. We use aggregate quarterly data from 1999 to 2005 and a nested logit model to estimate the price elasticities of demand and the marginal costs of subscription of mobile telephony. Given these estimates, we simulate the effects of the merger. We find that the available mobile telephony subscription products are close substitutes. The merger may cause substantial price increases, even in the presence of large cost efficiencies. On average, prices increase by 7-10% without cost efficiencies, and by about 6-10% with a 10% marginal cost reduction.
Agradecimentos/Acknowledgements
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Palavras-chave
Lock-in,Merger simulation,Mobile telephony,Nested logit,Network effects
Classificação Fields of Science and Technology
- Economia e Gestão - Ciências Sociais
