The Influence of Switching Cost on Market Structure: A Case Study of Mobile Number Portability Policy

摘要

Mobile number portability policy is looked as one of available approaches to reduce user's switching cost. However the policy's influence on the change of mobile telecommunication market structure is controversial. This paper employs an new game model algorithm to theoretical analysis and explain the possible market structure changes with switching cost descending. And some typical empirical data are given to correspondingly demonstrate the theoretical research. The results, indicate that the implementation of number portability policy-will activate competition, optimize market structure, undermine the-incumbent operators' monopoly power of the market and finally increase the whole social welfare.