Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
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A Study on A method to Evaluate Market Dominance Transfer through Bundling Services in a Telecommunication Market

통신시장 결합상품을 통한 지배력 전이 검증 방법에 대한 연구

  • Shin, Minsoo (School of Business, Hanyang University) ;
  • Kim, Iljung (School of Business, Graduate School, Hanyang University)
  • 신민수 (한양대학교 경영대학) ;
  • 김일중 (한양대학교 일반대학원 경영학과)
  • Received : 2015.03.18
  • Accepted : 2015.04.21
  • Published : 2015.06.30
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Abstract

The number of contracts for bundling services in a domestic telecommunication market records 1.3 miilion as of the first half year in 2007, and steadily increased to 8.97 million in 2010, to 12.76 million in 2013. In 2014, 70.4% of telecommunication service consumers are found to subscribe to bundling service. Bundling services provide consumers with benefits such as price discount, convenience, increase ARPU. However, a market dominant player in a specific market may transfer its market power to another market by selling bundling services. SSNIP has been adopted to provide a market definition. However, SSNIP is not suitable to measure the effect of market power transition through bundling services because SSNIP cannot measure the effect of changeover sales of bundling services. Thus, in this study, we have investigated the effect of market power transition through bundling services reflecting market power effect and quality upgrade using Gross Upward Market Power Pressure Index metho and reviewed UPP and derivative UPP models.

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References

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