Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets

The paper investigates determinants of pricing in international telephone service markets. An econometric model is developed to study the impact of different telecommunications-specific and macroeconomic variables over collection rate differentials and traffic imbalance between countries. Data from 24 worldwide national markets strengthen empirical findings from the theoretical analysis and make the econometric model an interesting and flexible instrument for new and efficient-turned telecommunications policies.