Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/167495 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6509
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the dual relationship between market structure and prices and between market structure and investment in mobile telecommunications. Using a uniquely constructed panel of mobile operators’ prices and accounting information across 33 OECD countries between 2002 and 2014, we document that more concentrated markets lead to higher end user prices. Furthermore, they also lead to higher investment per mobile operator, though the impact on total investment is not conclusive. Our findings are not only relevant for the current consolidation wave in the telecommunications industry. More generally, they stress that competition and regulatory authorities should take seriously the potential trade-off between market power effects and efficiency gains stemming from agreements between firms.
Subjects: 
mobile telecommunications
market structure
prices
investments
mergers
JEL: 
K20
L10
L40
L96
Document Type: 
Working Paper
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