A simulation analysis for structural regulation and behavior regulation on the telecommunication industry.

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To analyze combination of structural regulation for films choice of technology standards and entry and behavior regulation on telecommunication industry, we estimate the demand function that are influenced by global diffusion of same technology standards. Using a film behavior model, we simulate a treatment effect of regulations on market performances. We find consumer demand is significantly influenced by global network effect. Moreover, not only product differentiation, choosing widely diffused global standard is important to film survival.