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Project Citation: 

Project Description

Summary:  View help for Summary 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)

Scope of Project

JEL Classification:  View help for JEL Classification
      L96 Telecommunications
      L98 Government Policy
      L13 Oligopoly and Other Imperfect Markets
      L11 Production, Pricing, and Market Structure • Size Distribution of Firms
      O33 Technological Change: Choices and Consequences • Diffusion Processes


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