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Faculty & Research

Regulation and Service Provision in Dynamic Oligopoly: Evidence from Mobile Telecommunications

05 Oct
2021
3:15 pm
Jouy-en-Josas
English

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2021-10-05T15:15:00 2021-10-05T16:30:00 Regulation and Service Provision in Dynamic Oligopoly: Evidence from Mobile Telecommunications Department of Economics & Decision Sciences Speaker : Joao Granja de Almeida Assistant Professor at UCL Room T004  Jouy-en-Josas

Department of Economics & Decision Sciences

Speaker : Joao Granja de Almeida

Assistant Professor at UCL

Room T004 

Abstract :

I study coverage requirements, a common regulation in the mobile telecommunications industry that intends to accelerate the roll-out of new mobile telecommunications technologies to disadvantaged areas. I argue that the regulation may engender entry deterrence effects that limit its efficacy and lead to technology introduction patterns that are not cost-efficient. To quantify the impact of coverage requirements on market structure and the speed and cost of technology roll-out, I develop and estimate a dynamic game of entry and technology upgrade under regulation. I estimate the model using panel data on mobile technology availability at the municipality level in Brazil. In counterfactual simulations, I find that coverage requirements accelerate the introduction of 3G technology by just over 1 year, on average, and reduce firms’ profits by 24% relative to a scenario with no regulation. I find the entry deterrence effects to be small. Moreover, an alternative subsidization policy leads to a similar acceleration in the roll-out of 3G and substantially higher aggregate profits, likely increasing aggregate welfare relative to coverage requirements.

Link to his web page: https://www.joaogranja.net/

Zoom link to Seminar

 

Participate

Add to Calendar
2021-10-05T15:15:00 2021-10-05T16:30:00 Regulation and Service Provision in Dynamic Oligopoly: Evidence from Mobile Telecommunications Department of Economics & Decision Sciences Speaker : Joao Granja de Almeida Assistant Professor at UCL Room T004  Jouy-en-Josas