Market Power and Welfare Analysis of the Mobile Market in Brazil

Autores/as

  • Thiago Cardoso H. Botelho

Palabras clave:

indústria do gás natural, regulação, nova economia institucional.

Resumen

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.

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Publicado

2012-03-16

Número

Sección

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