Me and you and everyone we know: An empirical analysis of local network effects in mobile communications
AbstractThis paper investigates the importance that consumers assign to local network effects, i.e. the extent to which they take account of their contacts' mobile operators when choosing a provider for themselves. The authors identify individual characteristics that affect the importance consumers attach to local network effects. The study relies on a survey of 193 Italian students. The results show that consumers are highly heterogeneous with respect to the importance they give to the operators chosen by their friends/family members in choosing which provider to use. This heterogeneity is associated with individual innovativeness and patterns of mobile phone usage. For instance, consumers who are more interested in local network effects are typically more-aware users, who use voice services quite intensively. These consumers, who pay attention to local network effects, spend comparatively little proportional to the intensity of their mobile usage.
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Bibliographic InfoArticle provided by Elsevier in its journal Telecommunications Policy.
Volume (Year): 33 ()
Issue (Month): 1-2 (February)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description
Other versions of this item:
- Nicoletta Corrocher & Lorenzo Zirulia, 2008. "Me and you and everyone we know: an empirical analysis of local network effects in mobile communications," Working Paper Series 03-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
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- Muck, Johannes, 2012.
"The Effect of On-net/Off-net Differentiation and Heterogeneous Consumers on Network Size in Mobile Telecommunications – An Agent-based Approach,"
19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All
72477, International Telecommunications Society (ITS).
- 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.
- repec:lmu:msmdpa:13764 is not listed on IDEAS
- Karaçuka, Mehmet & Çatik, A. Nazif & Haucap, Justus, 2012. "Consumer choice and local network effects in mobile telecommunications in Turkey," DICE Discussion Papers 70, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Zucchini, Leon & Claussen, Jörg & Trüg, Moritz, 2013.
"Tariff-Mediated Network Effects versus Strategic Discounting: Evidence from German Mobile Telecommunications,"
Discussion Papers in Business Administration
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- Zucchini, Leon & Claussen, Jörg & Trüg, Moritz, 2013. "Tariff-mediated network effects versus strategic discounting: Evidence from German mobile telecommunications," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 751-759.
- Liangjie Zhao & Wenqi Duan, 2014. "Simulating the Evolution of Market Shares: The Effects of Customer Learning and Local Network Externalities," Computational Economics, Society for Computational Economics, vol. 43(1), pages 53-70, January.
- repec:lmu:msmdpa:12688 is not listed on IDEAS
- 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).
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