Advanced Search
MyIDEAS: Login to save this article or follow this journal

A Fallacy of Dominant Price Vectors in Network Industries

Contents:

Author Info

  • Bolle Friedel

    ()
    (Europa Universität Viadrina Frankfurt, Oder)

  • Heimel Jana

    (Europa Universität Viadrina Frankfurt, Oder)

Abstract

In German mobile phone contracts, calls in the provider's home net are usually less expensive than external calls (to the network of a competitor). Thus customers have to compare vectors of prices, and such a comparison can be the source of a fallacy in the presence of network externalities. Even if a provider with a lower market share requires lower prices for calls in the home as well as to other networks, his average price may be higher than that of a larger provider. Not being aware of this fact is called "a fallacy of dominant price vectors". Based on a questionnaire study this fallacy turns out to be a real phenomenon.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.degruyter.com/view/j/rne.2005.4.3/rne.2005.4.3.1073/rne.2005.4.3.1073.xml?format=INT
Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 4 (2005)
Issue (Month): 3 (September)
Pages: 1-8

as in new window
Handle: RePEc:bpj:rneart:v:4:y:2005:i:3:n:2

Contact details of provider:
Web page: http://www.degruyter.com

Order Information:
Web: http://www.degruyter.com/view/j/rne

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Barth, Anne-Kathrin & Graf, Julia, 2011. "Irrationality rings! - Experimental evidence on mobile tariff choices," DICE Discussion Papers 36, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Muck, Johannes, 2013. "The Effect of On-net/Off-net Differentiation and Heterogeneous Consumers on Network Size in Mobile Telecommunications An Agent-based Approach," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79856, Verein für Socialpolitik / German Economic Association.
  3. Haucap, Justus & Heimeshoff, Ulrich & Stühmeier, Torben, 2010. "Wettbewerb im deutschen Mobilfunkmarkt," DICE Ordnungspolitische Perspektiven 04, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  4. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).
  5. Sven Schade & Thorsten Frey & Nezar Mahmoud, 2009. "Simulating Discount-Pricing Strategies for the GSM-Mobile Market," Business & Information Systems Engineering, Springer, vol. 1(4), pages 289-300, August.
  6. Muck, Johannes, 2012. "The effect of on-net / off-net differentiation and heterogeneuous consumers on network size in mobile telecommunications : an agent-based aporoach," 23rd European Regional ITS Conference, Vienna 2012 60355, International Telecommunications Society (ITS).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bpj:rneart:v:4:y:2005:i:3:n:2. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.