The Economics of Two-Way Interconnection.

• Superior document: Forschungsergebnisse der Wirtschaftsuniversitaet Wien Series ; v.13
• Author: Berger, Ulrich.
• Place / Publishing House: Frankfurt a.M. : : Peter Lang GmbH, Internationaler Verlag der Wissenschaften,, 2006.; Ã2006.
• Year of Publication: 2006
• Edition: 1st ed.
• Language: English
• Series: Forschungsergebnisse der Wirtschaftsuniversitaet Wien Series
• Physical Description: 1 online resource (90 pages)

Table of Contents

Cover -- 1 Introduction -- 1.1 Two-Way Interconnection -- 1.2 Telecommunications -- 1.3 The Role of the Access Charge -- 1.4 Literature Overview -- 1.4.1 Linear Pricing Models -- 1.4.2 Nonlinear Pricing Models -- 1.4.3 Termination-Based Price Discrimination -- 1.5 Introducing Call Externalities -- 1.6 Outline -- 2 The Basic Model -- 2.1 Cost and Price Structure -- 2.2 Subscription Decision and Demand -- 2.3 Existence and Stability of Equilibria -- 2.3.1 Existence of Consumer Equilibria -- 2.3.2 Stability of Consumer Equilibria -- 2.3.3 Network Equilibria -- 3 Linear Pricing -- 3.1 First Order Conditions -- 3.2 Constant Elasticity of Demand -- 3.3 Graphical Analysis -- 3.4 Comparative Statics -- 3.5 The Collusive Role of the Access Charge -- 3.6 The Socially Optimal Access Charge -- 3.7 Discussion -- 4 Nonlinear Pricing -- 4.1 Equilibrium Analysis -- 4.2 Profit Maximizing Access Charge -- 4.3 Welfare Maximizing Access Charge -- 4.4 Discussion -- 5 The Dynamics of Market Shares -- 5.1 Existence, Multiplicity, and Stability of Equilibria -- 5.2 Out-of-Equilibrium Dynamics -- 5.2.1 Dynamical Systems -- 5.2.2 Levels of Rationality -- 5.2.3 Simplifying Assumptions -- 5.3 Best Response Dynamics -- 5.4 Two Networks -- 5.5 Three Networks -- 5.5.1 On-net Price below Off-net Price -- 5.5.2 On-net Price above Off-net Price -- 5.5.3 Cyclic Symmetry -- 5.5.4 The General Case -- 5.6 Discussion -- 6 The Coexistence Puzzle -- 6.1 Introduction -- 6.2 Local Interaction Models -- 6.3 A Simple Hexagonal Graph Structure -- 6.4 Discussion.