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This paper studies the relationship between price regulation and mar-keting intensity in the Korean mobile telecommunications service industry, asector in which direct retail price controls are imposed by the regulatory authori-ty. Facing such price regulations, mobile service providers in Korea seem tohave focused on non-price competition in their marketing activities, such ashandset subsidies. The findings show that marketing intensity escalates after aprice control is implemented until the next price control is imposed. This is asign of strong competitive pressure even under the legal ban on handset subsi-dies in Korea. When strong competitive pressure exists and prices are regulated,restrictions on marketing may not work well.