The Effect of Market Structure on Cellular Technology Adoption and Pricing

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2011
Volume: 3
Issue: 2
Pages: 221-51

Authors (2)

Katja Seim (not in RePEc) V. Brian Viard

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine how structural changes in the mobile telecommunications industry between 1996, when local markets were duopolies, and 1998, when varying degrees of regulated entry had occurred, affected firms' product offerings and nonlinear pricing strategies. We relate firms' digital technology adoption and the characteristics of their calling plan menus to the amount of entry in local markets. We find that entry induces firms to offer larger menus with more evenly spread plans, both directly and by accelerating the introduction of digital menus with such features. Prices decline with entry, in particular for high-valuation consumers who benefit from steeper quantity discounts. (JEL L11, L13, L96, L98, O33)

Technical Details

RePEc Handle
repec:aea:aejmic:v:3:y:2011:i:2:p:221-51
Journal Field
General
Author Count
2
Added to Database
2026-01-29