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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28439
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| Title: | Cell Phone Demand and Consumer Learning - An Empirical Analysis |
| Authors: | Gaynor, Martin - Carnegie Mellon University
Shi, Yunfeng - Carnegie Mellon University
Telang, Rahul - Carnegie Mellon University
Vogt, William - Carnegie Mellon University |
| Issue Date: | 2005 |
| Series/Report no.: | NET Institute Working Paper;05-28 |
| Abstract: | A structural model is used in this paper to analyze the demand and
learning behavior in cell phone market. We assume that the cell phone
consumption can be divided into a high-value part and a low-value part.
The consumers are assumed to be uncertain about the exogenous shock of
the need for high-value usage and also their preferences over the
low-value usage. Meanwhile, we assume that the consumers' knowledge
improves over time. As a result, the match between their plan choice and
consumption pattern becomes better. Such a learning behavior is
supported by the data set. Bayesian updating is used to represent the
learning. The estimates of the parameters are obtained and compared to
the benchmarks from previous research. |
| URI: | http://hdl.handle.net/2451/28439 |
| Appears in Collections: | NET Institute Working Papers Series
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