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Pro-competition Public Policy in Network Markets with Switching Costs: Evidence from 'Mobile Number Portability' in Wireless Telecommunications Industry

机译:具有转换成本的网络市场中的竞争性公共政策:来自无线电信行业“移动号码可携带性”的证据

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Does public policy designed to promote market competition indeed achieve the intended consequence? Using the wireless industry as a testing field, this paper examines this question by focusing on the impact of mobile number portability (MNP) regulation on competition. We first construct a switching-costs model in which market growth rate and initial market structure are two salient industry characteristics. Guided by the analytical predictions, we analyze quarterly panel data of 218 major wireless operators in 52 countries from 2003-2009. We find relative market share gains for small firms under MNP, especially in markets with higher growth rate and lower concentration. Yet, surprisingly, large firms still manage to enjoy greater profit after MNP. We interpret the conundrum of "market share convergence" and "profit divergence" with customer base composition. Our method of analyzing asymmetric MNP effect in a cross-country context is applicable to public policy analysis in other industries.
机译:旨在促进市场竞争的公共政策是否确实达到了预期的结果?本文以无线行业为测试领域,重点研究了移动号码可携带性(MNP)法规对竞争的影响。我们首先构建一个转换成本模型,其中市场增长率和初始市场结构是两个突出的行业特征。在分析预测的指导下,我们分析了2003-2009年52个国家/地区的218家主要无线运营商的季度面板数据。我们发现MNP下的小公司的相对市场份额增加,尤其是在具有较高增长率和较低集中度的市场中。然而,令人惊讶的是,大企业在获得MNP之后仍能享受更大的利润。我们用客户群来解释“市场份额趋同”和“利润趋同”的难题。我们在跨国环境下分析非对称MNP效应的方法适用于其他行业的公共政策分析。

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