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.