Network Interconnection with Asymmetric Networks and Heterogeneous Calling Patterns.
The paper analyzes network interconnection when subscribers are heterogeneous in their demand for calls. In the two-way interconnection case, an increase in the difference between termination charges affects the average intensity of competition, while an increase in the average termination charge affects the relative intensity of competition for the high and low volume subscribers. If the incumbent is regulated so that it just breaks even, then a reciprocal termination charge is optimal. This...Expand abstract
- Publication status:
- Peer review status:
- Peer reviewed
- Accepted Manuscript
- Copyright holder:
- Elsevier B.V.
- Copyright date:
- © 2004 Elsevier B.V. All rights reserved. NOTICE: this is the author’s version of a work that was accepted for publication in Information Economics and Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Information Economics and Policy, 16, 3, (September 2004) DOI#10.1016/j.infoecopol.2004.01.006
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