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IASI Research Report n. 437 (Previous ) Cricelli L.,
Gastaldi M.,
Levialdi N.Toward competition in international telecommunicationsABSTRACT In this paper a symbiotic production model to analyse international telecommunication market is introduced. Using the Nash-bargaining solution to surplus splitting we formalize the carriers bargaining behaviour in a growing competitive pressure market. The effect of competition is analysed both between carriers in the final market and in the intermediate market in which carriers compete over tariffs to get an appropriate distribution of profits. We show the carriers may have an incentive to a cooperative behaviour in the setting of tariffs and the results of such behaviour in terms of final prices depends upon the competitive pressure degree they are subject. The obtained results may have policy implications.