The impact of telecommunication technologies on competition in services and goods markets: empirical evidence

Abstract

In this paper, we empirically show that a more intensive use and wider adoption of telecommunication technologies significantly increases the level of product market competition in services and goods markets. Our results are consistent with the view that the use of telecommunication technologies can lower the costs of entry and search.

These findings are robust to various measures of competition and a wide range of specification checks.

Keywords

• product market competition
• telecommunication technologies