Suchergebnisse

AbstractThis study evaluates the impact of next‐generation‐access network coverage on the innovation efficiency of 278 Portuguese municipalities through a spatial panel data analysis focused on the period 2012–2015. We find evidence that the additional territorial coverage of next‐generation access networks has a significant, negative, indirect, and permanent effect on the innovation efficiency of Portuguese municipalities. Other results include significant time dependence effects and stronger marginal effects in the long run. Several extensions reinforce the qualitative nature of benchmark outcomes. From a regulatory point of view, this research identifies a trade‐off in the Portuguese telecommunications industry: universal (restricted) access to next‐generation access networks can reduce (improve) the innovation efficiency of Portuguese municipalities, respectively.

ABSTRACTWe merge the two‐sided markets duopoly model of Armstrong (2006) with the nested vertical and horizontal differentiation model of Gabszewicz and Wauthy (2012), which consists of a linear city with different consumer densities on the left and on the right side of the city. In equilibrium, the high‐quality platform sells at a higher price and captures a greater market share than the low‐quality platform, despite the indifferent consumer being closer to the high‐quality platform. The difference between market shares is lower than socially optimal. A perturbation that introduces a negligible difference between the consumer density on the left and on the right side of the city may disrupt existence of equilibrium in the model of Armstrong (2006).