Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Monday, September 27, 2010

The Economics of Number Portability: Switching Costs and Two-Part Tariffs

Posted by D. Daniel Sokol

Reiko Aoki and John Small  explain The Economics of Number Portability: Switching Costs and Two-Part Tariffs.

ABSTRACT: This paper interprets number portability as a reduction of switching costs in a model of competition between telephone companies. We identify several cases by their cost and demand characteristics and show that social benefit of number portability are not guaranteed. Analysis using two-part tariff highlights the effect of how the technological cost of switching cost reduction effects the final market allocation.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/09/the-economics-of-number-portability-switching-costs-and-two-part-tariffs.html

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