Measuring Market Power: The Czech Market of Mobile Operators
|Author:||Bc. Barbora Kolomazníková|
|Year:||2015 - summer|
|Leaders:|| Ing. Ivo Koubek
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The main focus of the thesis is the measurement of market power. Since market power
is a determinant of the degree of competition, its measurement is the key feature of
competition policy. We present various methods for assessing market power. One of the
most famous ones are Lerner index and Herfindahl-Hirschman index, both of which belong
to SCP paradigm. Another group of measures are the NEIO models, which provide the
empirical analysis of relevant markets.
For the estimation of market power, we have chosen the czech market of mobile operators.
We examine the three largest operators (i.e. O2, T-Mobile and Vodafone) in the
period 2000-2013. Firstly, the model of R¨oller and Parker (1997) is used to identify the
market’s structure. Secondly, we employ the Appelbaum’s (1982) industry-level measure
to estimate market power.