Question
Use your economic theory on duopolies and price discrimination to explain the pricing behavior of Vodacom and MTN. Use figures in your theoretical analysis? Two
Use your economic theory on duopolies and price discrimination to explain the pricing behavior of Vodacom and MTN. Use figures in your theoretical analysis?
Two key recommendations regarding pre-paid data bundles:
1)Vodacom and MTN must independently reach agreement with the Commission within two months on a reduction in the headline prices of all sub-500MB 30-day prepaid data bundles to reflect the same cost per MB as the 500MB 30- day bundle.
2) Vodacom and MTN must independently reach agreement with the Commission to cease ongoing partitioning and price discrimination strategies [with respect to pre-paid data bundles] that may facilitate greater exploitation of market power and anti-poor pricing.
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