Estimating Possible Subsidy Effects in Broadband Services and Deployment

Mohammadi, Mohammad Ali (2021): Estimating Possible Subsidy Effects in Broadband Services and Deployment.

Abstract

In this work, the dynamic competition between firms providing internet services is studied. The framework is Markov equilibrium whereby structural parameters are obtained using two-step estimations, allowing for analyzing the situation in case of subsidies for service upgrade. The results show that such subsidy has little effect on the number of firms while increasing the number of fast firms.

• Item Type: MPRA Paper
• Language: English
• Keywords: Structural estimation, dynamic competition, Markov perfect equilibrium, investment in Internet provision, subsidies
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; L - Industrial Organization > L5 - Regulation and Industrial Policy > L50 - General; L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services ; Computer Software

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