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Network effects with quality change: an empirical analysis of the Japanese mobile telecommunications market, 1995-2001

  • Mitsuru Sunada

    (Competition Policy Research Center, Japan Fair Trade Commission, Tokyo, Japan)

This study assesses the role of network effects under rapid quality change in the Japanese mobile telecommunications market by utilizing a simple framework based on a discrete choice model of product differentiation. The results indicate the existence of network effects in the Japanese mobile telecommunications market during the late 1990s and early 2000s. However, changes in the value of mobile telecommunications services mainly depend on quality changes; the contribution of network effects is negligible. Additionally, over time, network effects make a diminishing contribution to improving consumers' valuations. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1432
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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 29 (2008)
Issue (Month): 8 ()
Pages: 657-674

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Handle: RePEc:wly:mgtdec:v:29:y:2008:i:8:p:657-674
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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