A legal control method on predatory pricing in telecom market-simulation and effectiveness verification

According to industrial characteristics of telecom market, this paper simulates the game among telecom operators in the market by computer simulation technology. It further puts forward a method to certificate illegalness of predatory pricing and verifies its effectiveness in both cases of limited interconnection and sufficient interconnection. The conclusions are: (1) when interconnection is limited, this method will protect the survival space of disadvantaged enterprise and improve consumer´s welfare in the form of promoting competition; (2) when interconnection is sufficient, this method will stimulate innovation and protect technological progress and consumer´s welfare in the long run by providing enterprise with appropriate profits.