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Distribution of the benefits of regulation vs. competition: The case of mobile telephony in South Africa

Ryan Hawthorne 1 Lukasz Grzybowski 2, 3, 4
3 ECOGE - Economie Gestion
I3, une unité mixte de recherche CNRS (UMR 9217) - Institut interdisciplinaire de l’innovation
Abstract : We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly unequal country, South Africa. Using six waves of a consumer survey of over 134,000 individuals between 2009-2014, we estimate a discrete choice model allowing for individual-specific price-responsiveness and preferences for network operators. Next, we use a demand and supply equilibrium framework to simulate prices and the distribution of welfare without entry and mobile termination rate regulation. We find that, in the South African context, regulation benefits consumers significantly more than entry does, and that high-income consumers and city-dwellers benefit more in terms of increased consumer surplus.
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https://hal.telecom-paris.fr/hal-03235928
Contributor : Lukasz Grzybowski <>
Submitted on : Wednesday, May 26, 2021 - 9:38:36 AM
Last modification on : Tuesday, September 21, 2021 - 2:08:06 PM
Long-term archiving on: : Friday, August 27, 2021 - 6:24:44 PM

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Ryan Hawthorne, Lukasz Grzybowski. Distribution of the benefits of regulation vs. competition: The case of mobile telephony in South Africa. International Journal of Industrial Organization, Elsevier, 2021, 74, pp.102673. ⟨10.1016/j.ijindorg.2020.102673⟩. ⟨hal-03235928⟩

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