Market Power and Welfare Analysis of the Mobile Market in Brazil

Authors

  • Thiago Cardoso H. Botelho

Keywords:

indústria do gás natural, regulação, nova economia institucional.

Abstract

This paper proposes the application of two different models, linked by interconnection prices in the mobile telephony market in Brazil. The first is an application of the model presented by Bresnahan (1982) to measure the market power of providers of mobile telephony in Brazil and to estimate a function for marginal cost. The second is an application of the model presented by Harbord and Hoering
(2010) to analyze the total welfare in Brazil mobile’s telephony market, when the mobile interconnection price is reduced. It is expected that a reduction in the price
of mobile interconnection leads to an increase in total welfare according to the positive externality of receiving a call. The results are in line with those reported by Harbord and Hoering (2010) for the case of the UK and go against some previous
literature on that matter, serving as a new policy orientation regulatory system for the mobile market.

Downloads

Download data is not yet available.

Downloads

Published

2012-03-16

Issue

Vol. 11 No. 1 (2011)

Section

Artigos

License

The submission of a manuscript authorizes its publication by the Brazilian Journal of Business Economics/Revista Brasileira de Economia de Empresas and implies that it refers to original work, which is not currently submitted to any other journal. It is forbidden any reproduction, partial or total, by any other media, either press or digital, of the published papers. In this case, previous and necessary authorization must be requested. In case it is obtained, one must include a formal acknowledgement to the BJBE/RBEE, which is the first publisher of the paper. The BJBE/RBEE does not pay any copyright to the authors of published papers.

Copyright and Licensing

The copyrighter of the BJBE/RBEE is the Editora Universa of the Universidade Católica de Brasília.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Submitting an article authorizes its publication and implies a commitment that the same material will not be submitted to another journal.

The journal does not pay royalties to the authors of published articles.