A Price Concentration Study on European Mobile Telecom Markets: Limitations and Insights

28 Pages Posted: 20 Nov 2014 Last revised: 21 Nov 2014

See all articles by Pauline Affeldt

Pauline Affeldt

German Institute for Economic Research (DIW Berlin); Technische Universität Berlin (TU Berlin)

Rainer Nitsche

E.CA Economics

Date Written: November 18, 2014

Abstract

Price concentration studies investigate the relationship between market concentration and price levels. They are increasingly used in the mobile telecom industry. This paper provides a detailed account of the limitations of such studies. In addition, it proposes a specific approach in order to account for quality differences across countries, which are likely important when explaining price differences. When applying our approach to European mobile telecom markets from 2003 to 2012, we find that there is no positive relationship between concentration and prices and some indications that the relationship may be negative.

Keywords: Price concentration study, mobile, wireless, merger control, efficiencies

Suggested Citation

Affeldt, Pauline and Nitsche, Rainer, A Price Concentration Study on European Mobile Telecom Markets: Limitations and Insights (November 18, 2014). ESMT Working Paper No. 14-07. Available at SSRN: https://ssrn.com/abstract=2526821 or http://dx.doi.org/10.2139/ssrn.2526821

Pauline Affeldt

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Juni 135
Berlin, 10623
Germany

Rainer Nitsche (Contact Author)

E.CA Economics ( email )

Schlossplatz 1
Berlin, 10178
Germany

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