| Publisher | Northwestern University | ||
|---|---|---|---|
| Format | 704.7KB PDF | Date added | 26 Jan 2006 |
| Topics | GSM, Cellular Equipment, Mobile - Wireless Communications | ||
| Downloads | 80 | ||
This paper develops empirical methods to analyze demand in a differentiated product market under nonlinear pricing. The author applies these techniques to study the cellular phone service market in Taiwan. The goal is to present a framework that can be used to obtain demand parameters and to evaluate the impact of termination-based price discrimination. Market shares in this market can be measured either by the number of subscribers or by the traffic volume. The estimation procedure combines these two measures to analyze the consumption behavior. In addition, the author evaluates the effects of intra-network discounts, which are common in this cellular market. These discounts considerably increase the market concentration rates.
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