This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Microeconomics: Vol. 3 No. 2 (May 2011)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

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

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)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (118.28 KB)

Authors

Seim, Katja (U PA)
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

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Microeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us