May 4, 2020, 14:00–15:00
Room Zoom Video
Industrial Organization seminar
Abstract
We develop a model of competition in prices and infrastructural investment among mobile network providers. Market shares and service quality (download speed) are simultaneously determined, for demand affects the network load just as delivered quality affects consumer demand. We assess the impact of consolidation, finding that total surplus and quality of service are decreasing in the number of firms, but consumer surplus is maximized at three firms.