Marketing Papers

Document Type

Technical Report

Date of this Version

5-2011

Publication Source

American Economic Journal: Microeconomics

Volume

3

Issue

2

Start Page

221

Last Page

251

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 varing 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.

Copyright/Permission Statement

Copyright © 2011 the American Economic Association.

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Date Posted: 15 June 2018

This document has been peer reviewed.