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Hedonic Prices in the German Market for Mobile Phones

Author

Listed:
  • Dewenter, Ralf

    (Helmut Schmidt University, Hamburg)

  • Haucap, Justus

    (Ruhr-Universitaet Bochum)

  • Luther, Ricardo

    (Helmut Schmidt University, Hamburg)

  • Roetzel, Peter

    (Helmut Schmidt University, Hamburg)

Abstract

This paper provides a hedonic price analysis of mobile telephones for the German market. We have assembled data on 302 different handsets from 25 manufacturers over the period from May 1998 to November 2003. While volume has a negative effect on the price of a mobile handset, the number of ringtones and the talk time battery life relative to the handset's weight positively affect mobile phone prices. Maybe somewhat surprisingly, radiation is statistically not significant. Also handsets have become cheaper over time, and handsets with additional features, such as MMS, MP3 or Bluetooth, command a higher price. In addition, we found positive brand name effects for LG, Nokia, Motorola and Samsung, but not for Siemens or Sony. According to our estimations these brand name premiums may range from 57 to 172 Euros.

Suggested Citation

  • Dewenter, Ralf & Haucap, Justus & Luther, Ricardo & Roetzel, Peter, 2004. "Hedonic Prices in the German Market for Mobile Phones," Working Paper 29/2004, Helmut Schmidt University, Hamburg.
    • Handle: RePEc:ris:vhsuwp:2004_029
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Hedonic Pricing
      by Clive Jones in Business Forecasting on 2013-05-23 03:23:38

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    Cited by:

    1. Bongers, Anelí & Torres, José L., 2014. "Technological change in U.S. jet fighter aircraft," Research Policy, Elsevier, vol. 43(9), pages 1570-1581.
    2. Yun, Seong Hun & Kim, Yongjae & Kim, Minki, 2019. "Quality-adjusted international price comparisons of mobile telecommunications services," Telecommunications Policy, Elsevier, vol. 43(4), pages 339-352.
    3. Osman Gulseven & Michael Wohlgenant, 2015. "A quality-based approach to estimating quantitative elasticities for differentiated products: an application to retail milk demand," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 2077-2096, September.
    4. Stefania Tonin & Margherita Turvani, 2011. "Environmental contamination and industrial real estate market: an application of hedonic price method in Italy," ERSA conference papers ersa10p511, European Regional Science Association.
    5. José A. Montenegro & José L. Torres, 2016. "Consumer preferences and implicit prices of smartphone characteristics," Working Papers 2016-04, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    6. Yoon, Jungsub & Lee, Jeong-Dong & Hwang, Seogwon, 2022. "Episodic change: A new approach to identifying industrial transition," Technovation, Elsevier, vol. 115(C).
    7. Chiraz Karamti & Lukasz Grzybowski, 2010. "Hedonic study on mobile telephony market in France: pricing–quality strategies," Netnomics, Springer, vol. 11(3), pages 255-289, October.
    8. Correa, Lisa & Crocioni, Pietro, 2012. "Can evidence of pricing power help market power assessment? Broadband Internet in Ireland and the Netherlands," Telecommunications Policy, Elsevier, vol. 36(5), pages 419-433.
    9. Ahmad, Waseem & Ahmed, Tanvir & Ahmad, Bashir, 2019. "Pricing of mobile phone attributes at the retail level in a developing country: Hedonic analysis," Telecommunications Policy, Elsevier, vol. 43(4), pages 299-309.
    10. Naoki Watanabe & Ryo Nakajima & Takanori Ida, 2010. "Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers’ Strategies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(4), pages 391-412, June.
    11. Kim, Wook Joon & Kim, Yongkyu, 2018. "An estimation of quality-adjusted prices for mobile services in Korea," 22nd ITS Biennial Conference, Seoul 2018. Beyond the boundaries: Challenges for business, policy and society 190346, International Telecommunications Society (ITS).

    More about this item

    Keywords

    Hedonic Price Analysis; Mobile Phones; Telecommunications;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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