Pricing patterns of cellular phones and phonecalls: A segment-level analysis

Dipak C. Jain, Eitan Muller, Naufel J. Vilcassim

Research output: Contribution to journalArticlepeer-review


One expectation of the US Federal Communications Commission (FCC) in the early stages of the cellular communications industry was that the presence of two licenses in each market would ensure competition, and thereby result in declining prices over time for both cellular phones and phonecalls. However, industry observers have noted that although the price of handsets has declined over time, the price of the phonecalls has not. This interesting pricing issue is investigated by modeling the market interaction between the providers of cellular services and also their interaction with customers using a game theoretic framework.

Original languageEnglish
Pages (from-to)131-141
Number of pages11
JournalManagement Science
Issue number2
StatePublished - Feb 1999


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