Evolution of my “Considerations”

No Comments

So, it looks like I may have been a little unfair to Gruber in my last post. Or, at the least, a bit premature. I took advantage of the sun’s emergence this afternoon to sit outside and finish reading the final chapter in The Economics of Mobile Telecommunications. Though I had assumed that a final chapter before the Appendix would offer a conclusion and not a lot of further analysis, I found some very interesting observations and Gruber addressed many of the concerns I raised at the end of my last post.

The final chapter, ‘The evolution of market structure in mobile telecommunication markets’, also reinforced my acknowledgment that I’m not a natural economist. It took me about half an hour to really wrap my head around about 3 pages of material. To be fair to me, some of that was while in transit, which is not the easiest way to think about the implications of formulas like Π(n*, s, F) > 0 > Π(n* + 1, s, F) — the zero entry condition used to help determine the Cournot equilibrium number of firms in a homogeneous goods industry. [Note to self: need to read up more on industrial organization and oligopoly theory.]

Continue reading…

Economic Considerations of Mobile Telecom Markets

No Comments

Part of my self-directed efforts to get ready for ComCult this fall includes trying to increase my foundational knowledge of telecoms policy. One thing that’s become apparent is although I still consume a lot of information through various feeds (and share some of the telecom relevant stuff on one of my Twitter accounts), it’s been a while since I’ve done a lot of dense, academic reading. As such — and along with my other commitments — it’s taken longer than I expected to get through The Economics of Mobile Telecommunications by Harald Gruber.

One of the things I enjoyed was gaining some sense of the development of mobile telecommunication networks from a policy viewpoint. As my undergrad focused on political science, Gruber’s economic handling of the material also added to some of my struggles. I only took a couple macro economics courses at post-secondary and a political science stats class. When discussing strengths and weaknesses of policy choices by various states, I could follow along fairly well. When he started getting into formulas in the chapters on ‘Determinants of diffusion of services’ and ‘Market conduct and pricing issues’, not quite so smoothly.

Continue reading…