Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
Efforts to develop appropriate policies and accurate strategies through the most accurate analyzes highlight the examination of two-sided markets, which differ significantly from one-sided markets. In this study, mobile telecommunications market which has a special place in two-sided market analysis...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Selcuk University Press
2019-11-01
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| Series: | Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/download/article-file/834156 |
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| Summary: | Efforts to develop appropriate policies and accurate strategies
through the most accurate analyzes highlight the examination of two-sided
markets, which differ significantly from one-sided markets. In this study,
mobile telecommunications market which has a special place in two-sided market
analysis will be studied. In mobile telecommunications market, it is suggested
that a reduction in mobile interconnection rates for the interconnection
service will show the waterbed effect, resulting in an increase in mobile
communication prices that the end user faces in the market. In this context, an
empirical analysis was made by Common Correlated Effects Mean Group (CCEMG)
estimator using the 41 quarter period data of 21 OECD countries between 2005
and 2015, and the effect of mobile interconnection rates, income and quantity
were estimated in determining the mobile communication prices. According to the
results, the waterbed effect in mobile telecommunications markets could not be
determined in the period analyzed for the related country group and mobile
interconnection rates acted as a cost factor and changed the prices in the same
direction. The coefficient of income
variable was positive and the expectation that the increase in income would
increase the price was met. The
explanatory variable coefficients of the number of subscribers and the penetration
rate representing the quantity were negative and they were evaluated to behave
in accordance with economic expectations and two-sided market characteristics. |
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| ISSN: | 2564-7458 |