Abstract
Anti-competitive behaviour, despite helping its practitioners reap rich benefits, is generally believed to have adverse effects on the consumers and the economy as a whole. This paper studies anti-competitive behaviour with specific focus on the Indian Telecom Industry. With an extensive coverage of tacit collusion, predatory pricing and competition structures, this paper attempts to provide a strong economic explanation for why big telecom operators are inclined to involve in anti-competitive behaviour. Using concentration ratios, Herfindahl–Hirschman Index (HHI) and a unique measure of excess profits of individual firms, the paper tries to identify which firms have the potential to exhibit anti-competitive behaviour. Real cases of anti-competitive behaviour by firms are also documented. It is hoped that telecom regulatory and competition authorities will be more vigilant and use concrete information to act decisively and impartially.
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