Economics and Mathematical Modeling of Duopoly Telecommunication Market

S A Vasilyev; Васильев С А; D G Vasilyeva; Васильева Д Г; M E Kostenko; Костенко М Э; L A Sevastianov; Севастьянов Л А; D A Urusova; Урусова Д А

Economics and Mathematical Modeling of Duopoly Telecommunication Market

Authors: Vasilyev SA¹, Vasilyeva DG¹, Kostenko ME¹, Sevastianov LA¹, Urusova DA¹
Affiliations:
1. Peoples Friendship University of Russia
Issue: No 3 (2009)
Pages: 57-67
Section: Articles
URL: http://journals.rudn.ru/miph/article/view/8644
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Abstract

This paper presents a model of two competing telecommunication companies. The telecommunication networks of companies have different attributes which assumed fix and the consumers have idiosyncratic tastes for these attributes. The networks are mandated to interconnect and the access charges are determined by companies cooperatively. The two telecommunication network companies are engaged in a price competition to attract consumers. Each consumer selects a network and determines the consumption of the telecommunication services. The regulation policy of the telecommunication market is studied for this model.

Keywords

mathematical modeling, telecommunications, pricing, marketequilibrium, state regulation.

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