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dc.contributor.authorBender, Christian M.en_US
dc.contributor.authorGötz, Georgen_US
dc.date.accessioned2011-02-18T16:12:44Z-
dc.date.available2011-02-18T16:12:44Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/44331-
dc.description.abstractThis paper models competition between two firms, which provide broadband Internet access in regional markets with different population densities. The firms, an incumbent and an entrant, differ in two ways. First, consumers bear costs when switching to the entrant. Second, the entrant faces a make-or-buy decision in each region and can choose between service-based and facility-based entry. The usual trade-off between static and dynamic efficiency does not apply in the sense that higher access fees might yield both, lower retail prices and higher total coverage. This holds despite a strategic effect in the entrant's investment decision. While investment lowers marginal costs in regions with facility-based entry, it intensifies competition in all regions. We show that the cost-reducing potential of investments dominates the strategic effect: Higher access fees increase facility-based competition, decrease retail prices and increase total demand.en_US
dc.language.isoengen_US
dc.publisherITS Europe Berlinen_US
dc.relation.ispartofseries21st European Regional ITS Conference, Copenhagen 2010en_US
dc.subject.jelD43en_US
dc.subject.jelL13en_US
dc.subject.jelL96en_US
dc.subject.ddc330en_US
dc.subject.keywordBroadband access marketsen_US
dc.subject.keywordfacility- and service-based entryen_US
dc.subject.keywordinvestmentsen_US
dc.subject.keywordeconomies of densityen_US
dc.subject.keywordswitching costsen_US
dc.titleCoexistence of service- and facility-based competition: The relevance of access prices for "make-or-buy"-decisionsen_US
dc.typeConference Paperen_US
dc.identifier.ppn654525536-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:itse10:3-
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