BILATERAL MARKET STRUCTURES AND REGULATORY POLICIES IN INTERNATIONAL TELEPHONE MARKETS

• 成果类型: Article
• 署名作者: Ju, Heng; Tan, Guofu
• 署名单位: Shanghai University of Finance & Economics; University of Southern California
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12162
• 发表日期: 2016
• 页码: 393-423
• 关键词: network competition; telecommunications

摘要

We develop models of bilateral oligopoly with traffic exchanges to study the competition and regulatory policies in the international telephone markets. Under the requirement of uniform settlement rates, the proportional return rule (PRR) inflates the rates and hence neutralizes PRR's effect on calling prices. Retail competition and PRR increase net settlement payments. Market efficiency is improved when there are multiple channels for traffic exchanges. Using a panel of 47 countries that exchanged traffic with the United States between 1992 and 2004, we test the effects of bilateral market structures and the U.S. policies. The empirical results support our theoretical findings.