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Can evidence of pricing power help market power assessment? Broadband internet in Ireland and the Netherlands

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Correa, Lisa and Crocioni, Pietro (2012) Can evidence of pricing power help market power assessment? Broadband internet in Ireland and the Netherlands. Telecommunications Policy, Vol.36 (No.5). pp. 419-433. doi:10.1016/j.telpol.2011.11.014

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Official URL: http://dx.doi.org/10.1016/j.telpol.2011.11.014

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Abstract

This article proposes a simple hedonic price test to assess whether firms may have pricing power. The test allows NRAs to compare prices of providers of differentiated products on a like-for-like basis. Testing for pricing power could be a useful complement to market share analysis. This is especially the case in market reviews periodically undertaken by European communications regulators. As an illustration the test was applied to broadband Internet access services in Ireland and the Netherlands. Results appear encouraging as they are broadly aligned to the decisions of the regulatory authorities in both countries that the incumbent DSL operators had market power at the time.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Telecommunications Policy
Publisher: Elsevier Science BV
ISSN: 0308-5961
Official Date: 2012
Dates:
DateEvent
2012Published
Volume: Vol.36
Number: No.5
Page Range: pp. 419-433
DOI: 10.1016/j.telpol.2011.11.014
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

Data sourced from Thomson Reuters' Web of Knowledge

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