Strategic behaviours in international telecommunications system

In this paper the international telecommunication market is analysed in ord er to evaluate the impact of different strategic behaviours of telecommunic ations carriers. Using the Nash fixed threat bargaining model, we formalize the carriers bargaining behaviour in a growing competitive pressure market . The effect of competition is considered both in the final market and in t he intermediate one, in which carriers compete on tariffs to get an appropr iate distribution of profits. We show that carriers may have an incentive t o a cooperative behaviour in the setting of tariffs and the results of such behaviour in terms of final prices depends upon the competitive pressure d egree they are subject. (C) 2001 Elsevier Science B.V. All rights reserved.