Regular (Landline) Phone Company Versus Cellular Phone Company: The Non-Cooperative Case
In this paper, the authors developed a model that has two important perspectives, theoretical and practical. From the theoretical point of view they develop a model of two different rival companies supplying different communication services whose objectives are profit maximization. Although the services somewhat overlap, they are certainly not complete substitutes. In some sense the services are substitutes but in another sense they can also be complements. These factors may lead to several optimal pricing policies of coordination and cooperation between the two companies. These results differ from the classical pricing policy of the well-known regular duopoly case.