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Estimating Demand for Cellular Phone Service under Nonlinear Pricing


  • 研討會日期 : 2006-02-21
  • 時間 : 15:00
  • 主講人 : 黃景沂先生
  • 地點 : B棟110室
  • 演講者簡介 : 黃景沂先生為Ph.D. in Economics,Northwestern University (expected July 2006)。 其主要研究領域為Industrial Organization、Information Economics及Microeconometrics。 目前正申請本所研究職務中。
  • 演講摘要 : Cellular phone carriers typically offer complicated nonlinear tariffs. Consumers make a discrete choice among several rate plans. Each plan has a nonlinear price schedule, and the price of a phone call depends on its termination location. I present an empirical framework to analyze demand in a differentiated product market under such nonlinear pricing and evaluate the impact of termination-based price discrimination. Market shares 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. Moreover, the distribution of expenditure from a household survey is incorporated to identify heterogeneous tastes for cellular service among consumers. I apply the method to study the cellular market in Taiwan. It is characterized by significantly vertical differentiation across carriers and heterogeneous tastes among consumers. Intra-network discounts considerably increase the market concentration rates.