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http://hdl.handle.net/2451/29509
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| Title: | A Dyad Model of Calling Behaviour with Tie Strength Dynamics |
| Authors: | Shi, Mengze - University of Toronto
Yang, Botao - University of Southern California
Chiang, Jeongwen - Cheung Kong School of Business |
| Keywords: | Social Network, Tie-strength, Reciprocity, Wireless Phone Service |
| Issue Date: | 2009 |
| Series/Report no.: | Net Institute Working Paper;09-12 |
| Abstract: | This paper investigates the dynamic relation between callers' social
ties and their wireless phone service consumption. We construct a large
pair-level panel dataset with information on the number of each pair's
common contacts, calling activities, prices, and each caller's
characteristics over a one-year time period. We estimate a dynamic model
that encapsulates the evolving relationship between each pair of
consumers. We find the amount of communications between a pair of
consumers increases with the strength of their tie, which is higher when
these two consumers share more common contacts. Our results support the
reciprocity rule in telephone calls, i.e. when individual A initiates
more (less) phone calls to individual B in one month, their social tie
will be strengthened (weakened) and individual B will make more (less)
calls to individual A in the subsequent months. We demonstrate the
implications of our results in evaluating the return of temporary price
promotions and designing price plans. Our results underscore the
importance of incorporating social network characteristics in the study
of telecommunications markets. |
| URI: | http://hdl.handle.net/2451/29509 |
| Appears in Collections: | NET Institute Working Papers Series
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