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American Economic Journal: Microeconomics: Vol. 3 No. 2 (May 2011)
AEJ: Micro Volume. 3, Issue 2 | 
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AEJ: Micro Forthcoming Articles
The Effect of Market Structure on Cellular Technology Adoption and Pricing
Article Citation
Seim, Katja, and
V. Brian Viard. 2011. "The Effect of Market Structure on Cellular Technology Adoption and Pricing."
American Economic Journal: Microeconomics,
3(2): 221-51.
DOI: 10.1257/mic.3.2.221
DOI: 10.1257/mic.3.2.221
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)
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Full-text Article
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Download Data Set (118.28 KB)
Authors
Seim, Katja (U PA)
Viard, V. Brian (Cheung Kong Graduate School of Business, Beijing)
Viard, V. Brian (Cheung Kong Graduate School of Business, Beijing)
JEL Classifications
L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L13: Oligopoly and Other Imperfect Markets
L96: Telecommunications
L98: Industry Studies: Utilities and Transportation: Government Policy
O33: Technological Change: Choices and Consequences; Diffusion Processes
L13: Oligopoly and Other Imperfect Markets
L96: Telecommunications
L98: Industry Studies: Utilities and Transportation: Government Policy
O33: Technological Change: Choices and Consequences; Diffusion Processes
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