Market Power and Collusion on Interconnection Phone Market in Tunisia: What Lessons from International Experiences

Sami Debbichi, Walid HICHRI

Abstract


We try in this paper to characterize the state of mobile phone market in Tunisia. Our study is based on a survey of foreign experience (Europe) in detecting collusive behavior and a comparison of the critical threshold of collusion between operators in developing countries like Tunisia. The market power is estimated based on the work of Parker Roller (1997) and the assumption of "Balanced Calling Pattern". We use then the model of Friedman (1971) to compare the critical threshold of collusion. We show that the “conduct parameter” measuring the intensity of competition is not null during the period 1993-2011. Results show also that collusion is easier on the Tunisian market that on the Algerian, Jordanian, or Moroccan one.


Keywords


Termination Rate; Market Power; Competition; Mobile Phone Market.

Full Text:

PDF

References


Artz, B., Heywood, J. and Mc Ginty, M., (2009) “The merger paradox in a mixed oligopoly,”Research in Economics, vol. 63, pp. 1-10.

Baranes, E. and Flochel, L., (1999): "Interconnexion de réseaux et qualité de linfrastructure comme barrière à l’entrée : Quels Instruments de Régulation," Recherches Economiques de Louvain, vol. 65(1), pp. 23-46.

Baranes, E. and Poudou, J.C., (2010): "Cost-based access regulation and collusion in a differentiated duopoly," Economics Letters, vol. 106, pp. 172-176.

Berger, U. (2005) « Bill-and-keep vs. cost-based access pricing revisited» Economics Letters, vol.86, pp 107.112

Bourreau, M (2001) « La boucle locale radio comme vecteur d'entrée dans les télécommunications,» Revue Française d'Économie, Programme National Persée, Vol.15(4), pages 111-143.

Bulatovic, V., (2004): "Les Enjeux Economiques de l’Interconnexion des Réseaux de Télécommunications," Thèse de Doctorat, Université d’Orléans.

Colombier, N., MChirgui, Z. and Pénard, T., (2010): "Une analyse empirique des strategies d’interconnexion des opérateurs internet," Journal d’économie industrielle, vol. 131, pp. 25-50.

Cortade, T. (2005), « Règlementation, Structures de Marché et Comportements Stratégique Sur le Marché de l’Internet, » Doctorat thesis, University of Montpellier.

De Donder, Ph. (2005), « L'entreprise publique en concurrence : les oligopoles mixtes, » Revue française d'économie, vol. 20, n°2, pp. 11-50.

Debbichi (2014): “Market Power and Competition Effect on Termination Rate: Econometric Analysis of the Tunisian Case,” Research in Applied Economics, Vol. 6, no. 1, p.p.166-175.

Debbichi, S. et Ben Khalifa, A. (2013), “Market Conduct, interconnection costs and benchmarking in mobile phone industry: the Tunisian case,” International Journal of Mobile Learning and Organisation, vol. 7, n° 1, pp. 1-13.

Debbichi, S. et Hichri, W. (2013a), “Threshold of Preference for Collusion and Interconnection Fees in Different Market Structures : the Tunisian Mobile Market Case, » Working Paper GATE n° 2013-07.

Debbichi, S. et Hichri, W. (2013b), « Collusion et structure des coûts dans un marché de duopole mixte vs privé de téléphonie mobile,» Working Paper GATE n° 2013-19.

Dessein, W. (2003) « Network competition in nonlinear pricing» RAND Journal of Economics, Vol. 34, No 4, pp. 593-611.

Edwards, G. and Waverman, L. (2006) «The Effects of Public Ownership and Regulatory Independence on Regulatory Outcomes,» Journal of Regulatory Economics, vol. 29(1), p.p.23-67, 01.

Flacher, D. et Jennequin, H. (2007), « Réguler le secteur des Télécommunications ? Enjeux et perspectives, » ed. Economica.

Flochel, L., (1999): "Interconnexion de Réseaux et Charges daccès : Une Analysestratégique," Annales d’économie et de statistique, vol. 53, pp. 171-196.

Friedman, J. (1971), "A non-cooperative equilibrium for supergames", Review of Economic Studies, vol. 38 (1), pp. 1–12.

Harbord and Pagnozzi (2010): “Network-Based Price Discrimination and 'Bill-and-Keep' vs.'Cost-Based' Regulation of Mobile Termination Rates,” Review of Network Economics, Vol. 9, No. 1, p.p. 1-46.

Hoffler, F. (2009) « Mobile Termination and collusion, Revisited,» Journal of Regulatory Economics, vol. 35, pp. 246-274.

Murakami, H. and Asahi, R. (2011) « Multimarket contact and Market Power: A case of The U.S Airline Industry,» Hitotsubashi Journal of Commerce and Management, 45, pp.81-88.

Laffont, J.J Marcus, S. Roy, P. Tirole, J. (2003) «Internet Interconnection and the Off-net Cost Pay Principle,» The RAND Journal of Economics, vol. 34, n°2, p.p. 370-390.

Laffont, J.J. and Tirole, J. (2002) « Competition in Telecommunications,» European Journal of Political Economy, Vol.18, Issue 3, p.p. 609–610.

Laffont, J.-J. and Tirole, J., (2000): "Competition in Telecommunications," MIT Press, Cambridge.

Laffont.J.J. Tirole. J, Geras, I. (1996) «Creating competition through interconnection: Theory and practice» Journal of Regulatory Economics.

Parker, P.M. and Roller, L-H. (1997) « Collusive conduct in duopolies: multimarket contactand cross-ownership in the mobile telephone industry» RAND Journal of Economics, Vol. 28, Parsons, S.G. (2002) «Laffont and Tirole’s competition in Telecommunications: A view from the US» Int.J.of the Economics of Business, vol.9, No.3, pp.419-436.

Pénard, T. (2003) «Structures du marché et pratiques facilitant la collusion : une approche parla théorie des jeux répétés» Économie rurale, Vol. 277, No 277-278, pp. 80-98.

Pénard, T. (2002), "Competition and Strategy on the Mobile Telephony Market : a Look at the GSM Business Model in France", Communication & Strategies, n°45, pp. 49-79.

Schiff, A.F. (2005), «Three Essays in Network Economics: Two-Way Interconnection, TwoSided Networks, and Reputation Systems», Doctorat Thesis, University of Auckland.

Selten, R.(1973) «A simple model of imperfect competition, where 4 are few and 6 are many,» International Journal of Game Theory, Vol. 2, Issue 1, pp 141-201.

Souam S. et Pénard, T. (2002) « Collusion et politique de la concurrence en information asymétrique» Annales d’Économie et de Statistique, n°66, pp. 209-233.

Wallsten, S. J (2001) « An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America» The J. of Industrial Economics Volume X XLIX N°.1(2001)

Wallsten, S.J. (2002) « Does Sequencing Matter? Regulation Privatization in Telecommunications Reforms» Policy researches Working Paper, n° 2817.


Refbacks

  • There are currently no refbacks.


 

Copyright© 2015 Journal of Research in Business, Economics and Management. All rights reserved.

ISSN 2395-2210

For any help/support contact us at editorial@scitecresearch.com, jrbem@scitecresearch.com.