On Competition in the Telecommunications Market

Abstract

The paper investigates the process of competition in the market of telecommunication services between three firms: the leader, the challenger and the follower. In this work we construct a model of competition between three players in the form of a multistage non-zero sum game. As a solution of the game we find a subgame perfect equilibrium. We illustrate the results with an example for three companies working on the Saint-Petersburg telecommunications market.