TARA: Endogenous sunk costs in the market for mobile telecommunications: the role of licence fees

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Please use this identifier to cite or link to this item: http://hdl.handle.net/2262/61902

Title:	Endogenous sunk costs in the market for mobile telecommunications: the role of licence fees
Author:	Gruber, Harald
Keywords:	Mobile telecommunications Licensing Market structure Oligopoly Competition
Issue Date:	2002
Publisher:	Economic & Social Research Institute
Citation:	Gruber, Harald. 'Endogenous sunk costs in the market for mobile telecommunications: the role of licence fees'. - Economic & Social Review, Vol. 33, No. 1, Spring, 2002, pp. 55-64, Dublin: Economic & Social Research Institute
Abstract:	An oligopoly model with endogenous sunk costs illustrates the trade off between ex ante extraction of oligopoly rents and market entry of firms in the mobile telecommunications industry. Competitive bidding for radio frequency licences provides scope for setting market structure endogenously: the higher the licence fee, the lower the number of competitive firms sustained by the market. High licence fees may be a signal for post-entry collusion.
URI:	http://hdl.handle.net/2262/61902
ISSN:	00129984
Appears in Collections:	Economic and Social Review Archive: Complete Collection 1969- The Economic and Social Review, Vol. 33, No. 1, Spring, 2002

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