TY - JOUR
T1 - Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers' Strategies
AU - Watanabe, Naoki
AU - Nakajima, Ryo
AU - Ida, Takanori
N1 - Funding Information:
Acknowledgments The authors wish to thank Nobuyuki Harada, Yosuke Okada, Masakatsu Okubo, Isao Shoji, Ryuichi Tamura, seminar participants at the 14th DC (Japan), Kyoto University, and JEA spring meeting 2009, and two anonymous referees and the editor of this journal for helpful comments and suggestions. This research was supported by the Grant-in-Aid 2007 of the Telecommunication Advancement Foundation, the Grant-in-Aid 2007 of the Japan Economic Research Foundation, and the MEXT Grant-in-Aid 18730517 (Watanabe) and 18530203 (Ida).
PY - 2010
Y1 - 2010
N2 - In order to discuss oligopolists' strategic determination of quality-adjusted prices (QAPs), we conducted a hedonic regression analysis using adjacent periods and estimated the QAPs of mobile phone handsets sold in Japan between 2002 and mid-2007 for each carrier. We observed (1) a decreasing trend in QAP for each carrier, (2) a more rapid decrease in the QAPs of the two smaller carriers' handsets relative to that of the largest carrier, and (3) a turnover cycle of the QAPs between the two smaller carriers. If both small carriers decrease their QAPs at roughly the same time, neither will significantly increase their subscriber share, which can generate a turnover cycle of QAPs.
AB - In order to discuss oligopolists' strategic determination of quality-adjusted prices (QAPs), we conducted a hedonic regression analysis using adjacent periods and estimated the QAPs of mobile phone handsets sold in Japan between 2002 and mid-2007 for each carrier. We observed (1) a decreasing trend in QAP for each carrier, (2) a more rapid decrease in the QAPs of the two smaller carriers' handsets relative to that of the largest carrier, and (3) a turnover cycle of the QAPs between the two smaller carriers. If both small carriers decrease their QAPs at roughly the same time, neither will significantly increase their subscriber share, which can generate a turnover cycle of QAPs.
KW - Hedonic regression
KW - Quality-adjusted price
KW - Strategies
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U2 - 10.1007/s11151-010-9253-9
DO - 10.1007/s11151-010-9253-9
M3 - Article
AN - SCOPUS:77955844693
VL - 36
SP - 391
EP - 412
JO - Review of Industrial Organization
JF - Review of Industrial Organization
SN - 0889-938X
IS - 4
ER -