COLLUSIVE CONDUCT IN DUOPOLIES - MULTIMARKET CONTACT AND CROSS-OWNERSHIP IN THE MOBILE TELEPHONE INDUSTRY

With the deregulation of the telecommunications industry, a variety of industry structures have been created in hopes of increasing competit ion, One example is the licensing of cellular telephone services in th e United States, where the FCC created duopolies in which two firms we re granted licenses to compete in strictly defined product and geograp hic markers, Taking advantage of the unique regulatory environment, we rest to what degree duopolistic competition lends to competitive mark et outcomes. We find that cross-ownership and multimarket contact are important factors in explaining noncompetitive prices.