International Journal of Information and Communication Technology Research

International Journal of Information and Communication Technology Research>> Call for Papers(CFP)>>Volume 7, Number 7, July 2017

International Journal of Information and Communication Technology Research


Regular (Landline) Phone Company versus Cellular Phone Company: The Non-Cooperative Case

Full Text Pdf Pdf
Author(s) Tchai Tavor , Uriel Spiegel
On Pages 38-49
Volume No. 2
Issue No. 1
Issue Date January 01, 2012
Publishing Date January 01, 2012
Keywords Network industry, Cellular and landline pricing, Duopoly, Substitute, Comparative static analysis



Abstract

In this paper we developed a model that has two important perspectives, theoretical and practical. From the theoretical point of view we develop a model of two different rival companies supplying different communication services whose objectives are profit maximization. Although the services somewhat overlap, they are certainly not complete substitutes. In some sense the services are substitutes but in another sense they can also be complements. These factors may lead to several optimal pricing policies of coordination and cooperation between the two companies. These results differ from the classical pricing policy of the well known regular duopoly case. The use of comparative static analysis have led to some straightforward results, however some other results are surprising, counter intuitive and in some sense even provocative.

Seperator
    Journal of Information and Communication Technology | Journal of Science and Technology     
Copyrights
2010 IRPN Publishers