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: Mikail Kar
Format: Article
Language:English
Published: Selcuk University Press 2019-11-01
Series:Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi
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Online Access:https://dergipark.org.tr/tr/download/article-file/834156
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author Mikail Kar
author_facet Mikail Kar
author_sort Mikail Kar
collection DOAJ
description 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
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publishDate 2019-11-01
publisher Selcuk University Press
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series Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi
spelling doaj-art-e25f0d8e234f4301b2617288c2d28f302025-01-03T00:44:57ZengSelcuk University PressSelçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi2564-74582019-11-0122238339610.29249/selcuksbmyd.531070154Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications MarketsMikail Kar0Uludag UniversityEfforts 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.https://dergipark.org.tr/tr/download/article-file/834156two-sided marketsmobile telecommunications marketwaterbed effectinterconnection ratescommon correlated effects mean group estimatori̇ki taraflı piyasalarmobil telekomünikasyon piyasasısu yatağı etkisiarabağlantı ücretleriortak i̇lişkili etkiler ortalama gurup tahmincisi
spellingShingle Mikail Kar
Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi
two-sided markets
mobile telecommunications market
waterbed effect
interconnection rates
common correlated effects mean group estimator
i̇ki taraflı piyasalar
mobil telekomünikasyon piyasası
su yatağı etkisi
arabağlantı ücretleri
ortak i̇lişkili etkiler ortalama gurup tahmincisi
title Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
title_full Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
title_fullStr Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
title_full_unstemmed Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
title_short Two Sided Markets: The Case of The Waterbed Effect in OECD Mobile Telecommunications Markets
title_sort two sided markets the case of the waterbed effect in oecd mobile telecommunications markets
topic two-sided markets
mobile telecommunications market
waterbed effect
interconnection rates
common correlated effects mean group estimator
i̇ki taraflı piyasalar
mobil telekomünikasyon piyasası
su yatağı etkisi
arabağlantı ücretleri
ortak i̇lişkili etkiler ortalama gurup tahmincisi
url https://dergipark.org.tr/tr/download/article-file/834156
work_keys_str_mv AT mikailkar twosidedmarketsthecaseofthewaterbedeffectinoecdmobiletelecommunicationsmarkets