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Usage and diffusion of cellular telephony, 1998-2004

  • Michal Grajek

    (ESMT European School of Management and Technology)

  • Tobias Kretschmer

    (Ludwig-Maximilians-Universität)

We study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. Specifically, we address two questions: First, can we draw conclusions about the underlying drivers of technology diffusion by studying usage intensity? Second, what is the effect of high penetration of previous generations and competing networks on network usage intensity? Using an operator-level panel covering 41 countries with quarterly data over 6 years, we find that heterogeneity among adopters dominates network effects and that different technological generations are complements in terms of usage, but substitutes in terms of subscription.

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File URL: http://static.esmt.org/publications/workingpapers/ESMT-07-003.pdf
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Paper provided by ESMT European School of Management and Technology in its series ESMT Research Working Papers with number ESMT-07-003.

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Length: 44 pages
Date of creation: 27 Sep 2007
Date of revision:
Publication status: Published in International Journal of Industrial Organization 27(2): 238–249 .
Handle: RePEc:esm:wpaper:esmt-07-003
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  17. Eugenio J. Miravete & Lars-Hendrik Röller, 2004. "Estimating Price-Cost Markups Under Nonlinear Pricing Competition," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 526-535, 04/05.
  18. Swann, G. M. Peter, 2002. "The functional form of network effects," Information Economics and Policy, Elsevier, vol. 14(3), pages 417-429, September.
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  23. Doganoglu, Toker & Grzybowski, Lukasz, 2007. "Estimating network effects in mobile telephony in Germany," Information Economics and Policy, Elsevier, vol. 19(1), pages 65-79, March.
  24. Eugenio J. Miravete & Lars-Hendrik Röller, 2003. "Estimating Markups under Nonlinear Pricing Competition," CIG Working Papers SP II 2003-21, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  25. Trichy V. Krishnan & Frank M. Bass & Dipak C. Jain, 1999. "Optimal Pricing Strategy for New Products," Management Science, INFORMS, vol. 45(12), pages 1650-1663, December.
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