TY - JOUR
T1 - Pricing patterns of cellular phones and phonecalls
T2 - A segment-level analysis
AU - Jain, Dipak C.
AU - Muller, Eitan
AU - Vilcassim, Naufel J.
PY - 1999/2
Y1 - 1999/2
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0032634563&partnerID=8YFLogxK
U2 - 10.1287/mnsc.45.2.131
DO - 10.1287/mnsc.45.2.131
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AN - SCOPUS:0032634563
SN - 0025-1909
VL - 45
SP - 131
EP - 141
JO - Management Science
JF - Management Science
IS - 2
ER -