How Different is Wireless Access? Implications for Internet Mergers

DAE Working Paper No. 0307

26 Pages Posted: 23 Oct 2003

See all articles by Emanuele Giovannetti

Emanuele Giovannetti

Anglia Ruskin University - Institute for International Management Practice, LAIBS

Date Written: January 2003

Abstract

Network hierarchies in the Internet are often not fixed: two providers can be simultaneously input supplier and retailer, in a routing process, while being horizontally competing in another. We introduce a stylised network model capturing these aspects of the Internet to study the impact of differentiation introduced by wireless access on prices and profits. We then study the incentives for, and welfare impact of, a merger between the wireless provider and a local bottleneck fixed access one. These effects crucially depend on the degree of differentiation between the wireless and fixed Internet access modalities. Pricing, at each router, follows the motor-way toll metaphor.

Keywords: Keywords: Mergers, Internet, Network Industries, Wireless Access

JEL Classification: L13, L86, L96

Suggested Citation

Giovannetti, Emanuele, How Different is Wireless Access? Implications for Internet Mergers (January 2003). DAE Working Paper No. 0307. Available at SSRN: https://ssrn.com/abstract=453480 or http://dx.doi.org/10.2139/ssrn.453480

Emanuele Giovannetti (Contact Author)

Anglia Ruskin University - Institute for International Management Practice, LAIBS ( email )

East Road
Cambridge, Cambridgeshire CB1 1PT
United Kingdom

HOME PAGE: http://anglia.ac.uk/ruskin/en/home/faculties/aibs/staff_profiles/all_staff/emanuele_giovannetti.html

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