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Publication Type
Conference Proceedings
UWI Author(s)
Author, Analytic
Abdulkadri, Abdullahi O.
Author Role
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Author Affiliation
Department of Economics
Paper/Section Title
To fight or not to fight the entrant: A game theoretic analysis of the impact of deregulation of the Jamaican mobile phone market on calling rates
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Proceedings Title
83rd Annual Meeting of the Southwestern Economics Association
Date of Meeting
April 16-19, 2003
Place of Meeting
San Antonio, Texas
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Date of Publication
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Abstract
Deregulation of the telecommunication industry in Jamaica has led to lower rates for mobile phone customers as new mobile phone service providers enter the market. This paper models the competition among old and new mobile phone service providers as a game of entry deterrence. In equilibrium, the price war between old and new companies will persist until all economic profits have been eroded. Hence, the current trend in mobile phone rate reduction may be expected to continue in the short term.....
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