Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/44331 
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dc.contributor.authorBender, Christian M.en
dc.contributor.authorGötz, Georgen
dc.date.accessioned2011-02-18T16:12:44Z-
dc.date.available2011-02-18T16:12:44Z-
dc.date.issued2010-
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
dc.language.isoengen
dc.publisher|aInternational Telecommunications Society (ITS) |cCalgaryen
dc.relation.ispartofseries|a21st European Regional Conference of the International Telecommunications Society (ITS): "Telecommunications at New Crossroads: Changing Value Configurations, User Roles, and Regulation", Copenhagen, Denmark, 13th-15th September 2010 |x3en
dc.subject.jelD43en
dc.subject.jelL13en
dc.subject.jelL96en
dc.subject.ddc330en
dc.subject.keywordBroadband access marketsen
dc.subject.keywordfacility- and service-based entryen
dc.subject.keywordinvestmentsen
dc.subject.keywordeconomies of densityen
dc.subject.keywordswitching costsen
dc.titleCoexistence of service- and facility-based competition: The relevance of access prices for "make-or-buy"-decisions-
dc.typeConference Paperen
dc.identifier.ppn654525536en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:itse10:3en

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