Title: Computational method for approximating the behaviour of a triopoly: an application to the mobile telecommunications sector in Greece
Authors: Yiannis C. Bassiakos; Zacharoula Kalogiratou; Theodoros Monovasilis; Nicholas Tsounis
Addresses: Department of Economics, National and Kapodistrian University of Athens, Greece ' Department of Informatics, University of Western Macedonia, Greece ' Department of Economics, University of Western Macedonia, Greece ' Department of Economics, University of Western Macedonia, Greece
Abstract: Computational biology models of the Volterra-Lotka family, known as competing species models, are used for modelling a triopoly market, with application to the mobile telecommunications in Greece. Using a data sample for 1999-2016, parameter estimation with nonlinear least squares is performed. The findings show that the proportional change in the market share of the two largest companies, Cosmote and Vodafone, depends negatively on the market share of each other. Further, the market share of the marker leader, Cosmote, depends positively on the market share of the smallest company, Wind. The proportional change in the market share of Wind, depends negatively on the market share of the largest company Cosmote but it depends positively by the change in the market share by the second company, Vodafone. In the long-run it was found that the market shares tend to the stable equilibrium point where all three companies will survive with Cosmote having a projected number after eleven years (in 2030) of approximately 7.3 million subscribers, Vodafone 4.9 and Wind 3.7, the total number of projected market size being approximately 16 million customers.
Keywords: Volterra-Lotka models; triopoly; mobile telecommunications sector; Greece.
International Journal of Computational Economics and Econometrics, 2021 Vol.11 No.1, pp.63 - 77
Received: 30 Apr 2019
Accepted: 13 Sep 2019
Published online: 11 Dec 2020 *