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Grzybowski, L. & Pereira, P. (2007). Merger simulation in mobile telephony in Portugal. Review of Industrial Organization. 31 (3), 205-220
L. Grzybowski and J. P. Pereira, "Merger simulation in mobile telephony in Portugal", in Review of Industrial Organization, vol. 31, no. 3, pp. 205-220, 2007
@article{grzybowski2007_1773394148451,
author = "Grzybowski, L. and Pereira, P.",
title = "Merger simulation in mobile telephony in Portugal",
journal = "Review of Industrial Organization",
year = "2007",
volume = "31",
number = "3",
doi = "10.1007/s11151-008-9155-2",
pages = "205-220",
url = "https://www.springer.com/journal/11151"
}
TY - JOUR TI - Merger simulation in mobile telephony in Portugal T2 - Review of Industrial Organization VL - 31 IS - 3 AU - Grzybowski, L. AU - Pereira, P. PY - 2007 SP - 205-220 SN - 0889-938X DO - 10.1007/s11151-008-9155-2 UR - https://www.springer.com/journal/11151 AB - 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. ER -
English