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Korean Version |
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Abstract
This paper develops a two-period sequential choice model to analyze the effects of handset subsidy in newly emerging telecommunication markets. Handset subsidy can be used as a device for internalizing static and dynamic externality problems which exist between handset and service providers. According to this paper, allowing handset subsidy increases the profit of handset provider but has negative effects on the profit of service provider, consumer surplus and social welfare. |
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Keywords Handset Subsidy, Newly Emerging Service Market, Handset Market, Externality |
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JEL classification codes D4, L1, L5, L8 |
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Journal of the Korean Econometric Society |
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