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Tunus Telekomünikasyon Piyasasında Mobil Sesli Aramalar ve Tit-For-Tat Oyunu için Fiyat İndirimleri

Year 2021, Volume: 6 Issue: 1, 64 - 75, 29.06.2021

Abstract

Tunus telekomünikasyon pazarında, 2011-2015 dönemleri arasında mobil telefonlar arası sesli aramalarda yoğun fiyat indirimleri yaşanmıştır. Üç büyük tedarikçi olan Tunisie Télécom, Ooredoo and Orange’un Tit-For-Tat oyununda yoğun fiyat indirimi yaptıklarını veya gelirleri azalsa da aşırı tepki verdiklerini görüyoruz. Bu çalışma, ekonomik literatürde açıklandığı gibi, fiyat dinamiklerinin pazar payı kazanmak için basit bir strateji mi yoksa bir "fiyat savaşı" mı olduğunu araştırmaktadır. Bu çalışmada, fiyat esnekliğine, kullanıcı başına ortalama gelire ve fiyat serilerine göre her sağlayıcı için talep eğrileri oluşturulmakta ve ardından gecikmeleri analiz edilmektedir. Saf fiyatlandırma stratejisi, veri trafiğinin hızlı büyümesi ve kişi başı harcanabilir gayri safi milli hasılanın azalması bağlamında tartışılmaktadır. 

References

  • Axelrod, R. (1984). The evolution of coopération. New York: Basic Books.
  • Baran, P. A., & Sweezy, P. M. (1966). Monopoly capital: An essay on the American economic and social order. U.S.A.: Monthly Review Press.
  • Bertini, M. (2014). Price wars and the managers who start them. Business Strategy Review, 4, 52-55.
  • Bertrand, J. (1883). Théorie mathématique de la richesse sociale. Journal des Savants, 48, 499-508.
  • Bouali, S. (2017). Regulated termination rates and competition among Tunisian mobile network operators. Barriers, bias, and incentives. Telecommunications Policy, 41(7-8), 573-586.
  • Boumiza, K. (2016). Tunisie-telecom: Nizar bouguila launches an SOS to INT to stop the price war [in french]. (15.10.2020), Retrieved from: http://africanmanager.com/17_tunisietelecom-nizar-bouguila-lance-un-sos-a-lint-pour-arreter-la-guerre-des-prix/
  • Bungert, M. (2003). Termination of Price Wars: A Signaling Approach. DUV. Gagler Edition.
  • Busse, M. (2002). Firm financial condition and airline price wars. The RAND Journal of Economics, 33(2), 298-318.
  • Cournot, A.-A. (1838). Recherches sur les principes mathématiques de la théorie des richesses. Paris: Hachette. [Translated and reprint by Kessinger Publishing, LLC, 2008. Researches into the Mathematical Principles of the Theory of Wealth, with the Irving Fisher Contribution].
  • Chamberlin, E. H. (1929). Duopoly: Value where sellers are few. Quarterly Journal of Economics, 44, 63-100.
  • Curwen, P., & Whalley, J. (2009). Can Competition Be Introduced Via the Issue of New Mobile Telephony Licences: The Experience of 3G Licensing in Europe. In B. Preissl, J. Haucap & P. Curwen (Eds.), Telecommunication markets. Drivers and impediments (pp. 265-282). Physica-Verlag. Springer Company.
  • Duranton, S., & Izaret, J-M. (2009). Crisis pricing for the downturn and after. Boston Consulting Group. (15.10.2020), Retrieved from: https://www.bcg.com/publications/2009/crisis-pricing-for-the-downturn-and-after
  • Edgeworth, F. (1889). The pure theory of monopoly. (Reprinted in) Collected Papers relating to Political Economy. 1. Macmillan. 1925.
  • Elzinga, K. G., & Mills, D. E. (1999). Price wars triggered by entry. International Journal of Industrial Organization, 17(2), 179–98.
  • GSMA (2018). Reforming the taxation of mobile telephony in Tunisia [in french]. London. (15.10.2020), Retrieved from: https://www.gsma.com/publicpolicy/wp-content/uploads/2018/09/GSMA_Tunisia-report_80pp_French_WEBv2.pdf
  • Heil, O. P., & Helsen, K. (2001). Toward an understanding of price wars: Their nature and how they erupt. International Journal of Research in Marketing, 18(1-2), 83–98.
  • Henderson, D. R. (1997). What are price wars good for? Absolutely nothing. Fortune, 156.
  • INTT (2010). Annual Report-2010 [in french]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20annuel%202010.pdf
  • INTT (2012a). Annual Report-2012. (15.10.2020), Retrieved from: http://www.intt.tn/upload/rapports_annuels/Rapport2012/R12/index.html
  • INTT (2012b). Decision of the National Telecommunications Authority n ° 58/2012 dated July 05, 2012 setting the conditions and modalities for the implementation of the portability of fixed and mobile numbers in Tunisia [in French]. (10.10.2020), Retrieved from: http://www.intt.tn/upload/txts/fr/d%C3%A9cision_sur_la_pn__du_5_juillet_2012-vf.pdf
  • INTT (2014). Annual Report-2014. (21.02.2021), Retrieved from: http://www.intt.tn/upload/files/Rapport%202014.pdf
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  • INTT (2016). 2012-2016 Turnovers. Synthesis report [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20CA%202016.pdf
  • INTT (2018). Observatory annual report-2018 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Annuel%20-%202018%20(vf).pdf
  • INTT (2019). Observatory annual report-2019 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Annuel%202019.pdf
  • INTT (2020a). Monthly dashboard mobile telephony-december 2020 [in French]. (21.02. 2021), Retrieved from: http://www.intt.tn/upload/files/TB2_Tel-Mobile%20-12_2020.pdf
  • INTT (2020b). Quarterly dashbord-quarter 3-2020 [in French]. (21.02.2021), Retrieved from: http://www.intt.tn/upload/files/Rapport-TR3-2020.pdf
  • INTT (2020c). Financial report-2019 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Financier%202019.pdf
  • INTT (2020d). Biannual chronicle. 1st Semester 2020 [in French]. http://www.intt.tn/upload/files/Chronique%20Semestrielle%20S1-2020.pdf
  • Kalra, A., Raju, S., & Srinivasan, K. (1998). Response to competitive entry: A rationale for delayed defensive reaction. Marketing Science, 17(4), 380–405.
  • Krämer, A., Jung, M., & Burgartz, T. (2016). A small step from price competition to price war: Understanding causes, effects and possible countermeasures. International Business Research, 9(3), 1-13.
  • Lambrecht, A., & Skiera, B (2006). Paying too much and being happy about it: Existence, causes and consequences of tariff-choice biases. Journal of Marketing Research, 43(2), 212-213.
  • Leaders.com.tn (2010). En attendant Orange, savez-vous combien vous coûtent vos communications GSM sur Tunisiana et Tunisie Telecom ? [While waiting for Orange, do you know how much your GSM communications are costing you on Tunisiana and Tunisie Télécom?]. (15.10.2020), Retrieved from https://www.leaders.com.tn/article/2069-en-attendant-orange-savez-vous-combien-vous-coutent-vos-communications-gsm-sur-tunisiana-et-tunisie-telecom
  • Levenstein, M. C. (1997). Price wars and the stability of collusion: A study of the Pre-World War I Bromine Industry. Journal of Industrial Economics, 45(2), 117–37.
  • Nagle, T. T., & Müller, G. (2018). The strategy and tactics of pricing. A guide to grow more profitably. London: Routledge. Taylor & Francis.
  • Oftel (2001). Competition in the provision of fixed telephony services. Consultation document. London, UK. (1010.2020), Retrieved from: http://regulationbodyofknowledge.org/wp-content/uploads/2013/03/Oftel_Competition_in_the.pdf
  • Rao, A. R., Bergen, M. E., & Davis, S. (2000). How to fight a price war. Harvard Business Review, 78(2), 107–117.
  • Rapoport, A., & Chammah, A. M. (1965). Prisoner’s dilemma: A study of conflict and cooperation. Ann Arbor, MI: University of Michigan Press.
  • Rebaï, L., & Flacher, D. (2013). Complexité tarifaire et choix de consommation. Une application aux services de télécommunications en Tunisie [Pricing complexity and choice of consumption. An application to telecommunications services in Tunisia]. Revue d'économie industrielle, 143, 133-176.
  • Shanklin, W. L. (1989). Market share is not destiny. Journal of Business & Industrial Marketing, 4, 5–16.
  • Slade, E. (1990). Strategic pricing models and interpretation of price-war data. European Economic Review, 34 (2-3), 524-37.
  • Stigler, G. J. (1964). A theory of oligopoly. The Journal of Political Economy, 72(1), 44-61.
  • Urbany, J. E., & Dickson, P. R. (1991). Competitive price-cutting momentum and pricing reactions. Marketing Letters, 2(4), 393-402.
  • Van Heerde, H., Gijsbrechts, E., & Pauwels, K. (2008). Winners and losers in a major price war. Journal of Marketing Research, 45(5), 499-518.
  • Vives, X. (1999). Oligopoly pricing. old ideas and new tools. Cambridge: The MIT Press.
  • Webdo (2017). Tunisie: La portabilité des numéros mobiles lancée [Tunisia: Mobile number portability launched]. (10.10.2020), Retrieved from http://www.webdo.tn/2017/07/14/tunisie-portabilite-numeros-mobiles-lancee/
  • World Bank (2021). Tunisia-Data. (02.03.2021) Retrieved from: https://data.worldbank.org/country/TN

Price-cuts for the Mobile Voice Calls and the Tit-For-Tat Game on the Tunisian Telecommunication Market

Year 2021, Volume: 6 Issue: 1, 64 - 75, 29.06.2021

Abstract

The Tunisian telecommunication market experienced intense price-cuts of the mobile-to-mobile voice phone services throughout the 2011-2015 period. This paper shows that the three major providers, Tunisie Télécom, Ooredoo and Orange, have replicated the price-cuts as in the Tit-For-Tat game or over-reacted despite the hurt of their revenues. This paper investigates whether price dynamics is a simple strategy for gaining market share or a “price war”, as described in the economic literature. This paper constructs the demand curves for each provider based on price-elasticity, average revenue per user and price series, and then we analyze their lags. The pure pricing strategy is discussed as it coincided with the fast growth of data traffics and the decrease of the gross national disposable income per capita.

References

  • Axelrod, R. (1984). The evolution of coopération. New York: Basic Books.
  • Baran, P. A., & Sweezy, P. M. (1966). Monopoly capital: An essay on the American economic and social order. U.S.A.: Monthly Review Press.
  • Bertini, M. (2014). Price wars and the managers who start them. Business Strategy Review, 4, 52-55.
  • Bertrand, J. (1883). Théorie mathématique de la richesse sociale. Journal des Savants, 48, 499-508.
  • Bouali, S. (2017). Regulated termination rates and competition among Tunisian mobile network operators. Barriers, bias, and incentives. Telecommunications Policy, 41(7-8), 573-586.
  • Boumiza, K. (2016). Tunisie-telecom: Nizar bouguila launches an SOS to INT to stop the price war [in french]. (15.10.2020), Retrieved from: http://africanmanager.com/17_tunisietelecom-nizar-bouguila-lance-un-sos-a-lint-pour-arreter-la-guerre-des-prix/
  • Bungert, M. (2003). Termination of Price Wars: A Signaling Approach. DUV. Gagler Edition.
  • Busse, M. (2002). Firm financial condition and airline price wars. The RAND Journal of Economics, 33(2), 298-318.
  • Cournot, A.-A. (1838). Recherches sur les principes mathématiques de la théorie des richesses. Paris: Hachette. [Translated and reprint by Kessinger Publishing, LLC, 2008. Researches into the Mathematical Principles of the Theory of Wealth, with the Irving Fisher Contribution].
  • Chamberlin, E. H. (1929). Duopoly: Value where sellers are few. Quarterly Journal of Economics, 44, 63-100.
  • Curwen, P., & Whalley, J. (2009). Can Competition Be Introduced Via the Issue of New Mobile Telephony Licences: The Experience of 3G Licensing in Europe. In B. Preissl, J. Haucap & P. Curwen (Eds.), Telecommunication markets. Drivers and impediments (pp. 265-282). Physica-Verlag. Springer Company.
  • Duranton, S., & Izaret, J-M. (2009). Crisis pricing for the downturn and after. Boston Consulting Group. (15.10.2020), Retrieved from: https://www.bcg.com/publications/2009/crisis-pricing-for-the-downturn-and-after
  • Edgeworth, F. (1889). The pure theory of monopoly. (Reprinted in) Collected Papers relating to Political Economy. 1. Macmillan. 1925.
  • Elzinga, K. G., & Mills, D. E. (1999). Price wars triggered by entry. International Journal of Industrial Organization, 17(2), 179–98.
  • GSMA (2018). Reforming the taxation of mobile telephony in Tunisia [in french]. London. (15.10.2020), Retrieved from: https://www.gsma.com/publicpolicy/wp-content/uploads/2018/09/GSMA_Tunisia-report_80pp_French_WEBv2.pdf
  • Heil, O. P., & Helsen, K. (2001). Toward an understanding of price wars: Their nature and how they erupt. International Journal of Research in Marketing, 18(1-2), 83–98.
  • Henderson, D. R. (1997). What are price wars good for? Absolutely nothing. Fortune, 156.
  • INTT (2010). Annual Report-2010 [in french]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20annuel%202010.pdf
  • INTT (2012a). Annual Report-2012. (15.10.2020), Retrieved from: http://www.intt.tn/upload/rapports_annuels/Rapport2012/R12/index.html
  • INTT (2012b). Decision of the National Telecommunications Authority n ° 58/2012 dated July 05, 2012 setting the conditions and modalities for the implementation of the portability of fixed and mobile numbers in Tunisia [in French]. (10.10.2020), Retrieved from: http://www.intt.tn/upload/txts/fr/d%C3%A9cision_sur_la_pn__du_5_juillet_2012-vf.pdf
  • INTT (2014). Annual Report-2014. (21.02.2021), Retrieved from: http://www.intt.tn/upload/files/Rapport%202014.pdf
  • INTT (2015a). 2012-2015 turnover. Summary report. INT Observatory. (21.02.2021), Retrieved from: http://www.intt.tn/upload/files/Rapport%20CA%202012-2015-1.pdf
  • INTT (2015b). Annual report of the market telecommunication observatory [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Annuel%20-%202015%20v6.pdf
  • INTT (2016). 2012-2016 Turnovers. Synthesis report [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20CA%202016.pdf
  • INTT (2018). Observatory annual report-2018 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Annuel%20-%202018%20(vf).pdf
  • INTT (2019). Observatory annual report-2019 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Annuel%202019.pdf
  • INTT (2020a). Monthly dashboard mobile telephony-december 2020 [in French]. (21.02. 2021), Retrieved from: http://www.intt.tn/upload/files/TB2_Tel-Mobile%20-12_2020.pdf
  • INTT (2020b). Quarterly dashbord-quarter 3-2020 [in French]. (21.02.2021), Retrieved from: http://www.intt.tn/upload/files/Rapport-TR3-2020.pdf
  • INTT (2020c). Financial report-2019 [in French]. (15.10.2020), Retrieved from: http://www.intt.tn/upload/files/Rapport%20Financier%202019.pdf
  • INTT (2020d). Biannual chronicle. 1st Semester 2020 [in French]. http://www.intt.tn/upload/files/Chronique%20Semestrielle%20S1-2020.pdf
  • Kalra, A., Raju, S., & Srinivasan, K. (1998). Response to competitive entry: A rationale for delayed defensive reaction. Marketing Science, 17(4), 380–405.
  • Krämer, A., Jung, M., & Burgartz, T. (2016). A small step from price competition to price war: Understanding causes, effects and possible countermeasures. International Business Research, 9(3), 1-13.
  • Lambrecht, A., & Skiera, B (2006). Paying too much and being happy about it: Existence, causes and consequences of tariff-choice biases. Journal of Marketing Research, 43(2), 212-213.
  • Leaders.com.tn (2010). En attendant Orange, savez-vous combien vous coûtent vos communications GSM sur Tunisiana et Tunisie Telecom ? [While waiting for Orange, do you know how much your GSM communications are costing you on Tunisiana and Tunisie Télécom?]. (15.10.2020), Retrieved from https://www.leaders.com.tn/article/2069-en-attendant-orange-savez-vous-combien-vous-coutent-vos-communications-gsm-sur-tunisiana-et-tunisie-telecom
  • Levenstein, M. C. (1997). Price wars and the stability of collusion: A study of the Pre-World War I Bromine Industry. Journal of Industrial Economics, 45(2), 117–37.
  • Nagle, T. T., & Müller, G. (2018). The strategy and tactics of pricing. A guide to grow more profitably. London: Routledge. Taylor & Francis.
  • Oftel (2001). Competition in the provision of fixed telephony services. Consultation document. London, UK. (1010.2020), Retrieved from: http://regulationbodyofknowledge.org/wp-content/uploads/2013/03/Oftel_Competition_in_the.pdf
  • Rao, A. R., Bergen, M. E., & Davis, S. (2000). How to fight a price war. Harvard Business Review, 78(2), 107–117.
  • Rapoport, A., & Chammah, A. M. (1965). Prisoner’s dilemma: A study of conflict and cooperation. Ann Arbor, MI: University of Michigan Press.
  • Rebaï, L., & Flacher, D. (2013). Complexité tarifaire et choix de consommation. Une application aux services de télécommunications en Tunisie [Pricing complexity and choice of consumption. An application to telecommunications services in Tunisia]. Revue d'économie industrielle, 143, 133-176.
  • Shanklin, W. L. (1989). Market share is not destiny. Journal of Business & Industrial Marketing, 4, 5–16.
  • Slade, E. (1990). Strategic pricing models and interpretation of price-war data. European Economic Review, 34 (2-3), 524-37.
  • Stigler, G. J. (1964). A theory of oligopoly. The Journal of Political Economy, 72(1), 44-61.
  • Urbany, J. E., & Dickson, P. R. (1991). Competitive price-cutting momentum and pricing reactions. Marketing Letters, 2(4), 393-402.
  • Van Heerde, H., Gijsbrechts, E., & Pauwels, K. (2008). Winners and losers in a major price war. Journal of Marketing Research, 45(5), 499-518.
  • Vives, X. (1999). Oligopoly pricing. old ideas and new tools. Cambridge: The MIT Press.
  • Webdo (2017). Tunisie: La portabilité des numéros mobiles lancée [Tunisia: Mobile number portability launched]. (10.10.2020), Retrieved from http://www.webdo.tn/2017/07/14/tunisie-portabilite-numeros-mobiles-lancee/
  • World Bank (2021). Tunisia-Data. (02.03.2021) Retrieved from: https://data.worldbank.org/country/TN
There are 48 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Article
Authors

Safieddine Bouali 0000-0002-4901-0221

Publication Date June 29, 2021
Published in Issue Year 2021 Volume: 6 Issue: 1

Cite

APA Bouali, S. (2021). Price-cuts for the Mobile Voice Calls and the Tit-For-Tat Game on the Tunisian Telecommunication Market. JOEEP: Journal of Emerging Economies and Policy, 6(1), 64-75.

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