7,471 research outputs found

    The evolution of markets under entry and standards regulation - the case of global mobile telecommunication.

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    We analyze the effects of government policies on the evolution of an industry, the global mobile telecommunications market. We find a relatively slow diffusion convergence between countries. This follows partly from regulatory delay in issuing first licenses, yet persisting initial cross-country differences also contribute to a lack of convergence. Introducing competition has a strong immediate impact on diffusion, but a weak impact afterwards; sequential entry is preceded by pre-emptive behavior by incumbents. This is consistent with the presence of consumer switching costs. Setting a single technological standard accelerates the diffusion of analogue technologies considerably; for digital technologies it is too early to draw reliable conclusions, yet the available evidence suggests that setting single standards has similar beneficial effects.Competition; Costs; Effects; Industry; Convergence;

    Regulatory reforms in selected EU network industries

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    In the course of the 1990s, the EU has embarked on an ambitious regulatory reform programme for a number of European network industries, such as telecommunications, energy and transport. This paper analyses the potential benefits of successful reforms in these sectors with a focus on the price effects of regulatory reforms. Following a review of the existing empirical literature in this field, the paper discusses the evolution of the current regulatory framework for network industries in the EU. An empirical analysis of the main determinants of recent price developments in these industries provides evidence that regulatory reform measures had a substantial downward impact on prices in the four sectors under review.Network Industries, Panel Data, Price effects, Regulatory Reforms.

    Nonlinear stock prices adjustment in the G7 countries

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    This paper aims to modeling stock prices adjustment dynamics toward their fundamentals. We used the class of Switching Transition Error Correction Models (STECM) and we showed that stock prices deviations toward fundamentals could be characterized by nonlinear adjustment process with mean reversion. First, according to Anderson (1997), De Grauwe and Grimaldi (2005) and Boswijk et al.(2006), we justify these nonlinearities by the presence of heterogeneous transaction costs, behavioural heterogeneity and the interaction between shareholders expectations. After, we present STECM specification. We apply this model to describe the G7 indexes adjustment dynamics toward their fundamentals. We showed that the G7 stock indexes adjustment is smooth and nonlinearly mean-reverting and that the convergence speeds vary according to the disequilibrium extent. Finally, using two indicators proposed by Peel and Taylor (2000), we determine phases of under- and overvaluation of stock prices and measure intensity of stock prices adjustment strengths.Stock Prices, Heterogeneous Transaction Costs, Nonlinear Adjustment

    Economic Development Potential through IP Telephony for Namibia

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    IP telephony, economic growth, telecommunications, ICT, Granger causality, Namibia

    Impact of Information Technology and Implications for Monetary Policy

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    The first half of this paper shows the mechanisms through which innovations in Information Technology (IT) have impacts on our economy. Switching costs from existing technologies and network externalities may play important roles in the propagation of IT on a microeconomic level. In addition to the aggregation effects of such externalities, the costs of reallocating capital and retraining labor will hamper macroeconomic performance. Mismeasurements in economic statistics may prevent us from making optimal decisions based on relative price changes. The second half of this paper discusses the issues for improving efficiency in conducting monetary policy by focusing on the price mechanism. We should be careful whether to accommodate the "supply shocks" or not, considering the possibility of nominal rigidities or fluctuation in the general price level. It is also shown that mismeasurements in the price index may damage the credibility of a central bank, since it will be quite difficult to observe the achievement of monetary policy commitment.

    Testing the "Waterbed" Effect in Mobile Telephony

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    This paper examines the impact of regulatory intervention to cut termination rates of calls from fixed lines to mobile phones. Under quite general conditions of competition, theory suggests that lower termination charges will result in higher prices for mobile subscribers, a phenomenon known as the "waterbed" effect. The waterbed effect has long been hypothesized as a feature of many two-sided markets and especially the mobile network industry. Using a uniquely constructed panel of mobile operators' prices and profit margins across more than twenty countries over six years, we document empirically the existence and magnitude of this effect. Our results suggest that the waterbed effect is strong, but not full. We also provide evidence that both competition and market saturation, but most importantly their interaction, affect the overall impact of the waterbed effect on prices.telecommunications, regulation, Waterbed effect, two-sided markets
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