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Location: Fordham Law School Building, Skadden Conference Center, 150 W 62nd Street, New York, NY 10023
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Tuesday, May 3 • 4:30pm - 4:50pm
Does standards competition affect mobile average revenue per user? An econometric analysis

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This paper aims to address the differential effect of intra-standard and inter-standard competition on the prices of mobile telecommunication services, specifically in 3G and beyond. It is hypothesized that inter-standard competition will lower price over time after controlling for per capita GDP, preference diversity, and mobile teledensity. A fixed effects model was estimated using the least squares dummy variable (LSDV) method to empirically test the association, using ARPU as a proxy for price. The findings were inconclusive because though the direction of the effect suggested that standards competition might be reducing prices, it was not significant. Strong time trends in the data and hedging strategies, in which companies deploy multiple standards, might account for the observed weak effects.

Authors
KJ

Krishna Jayakar

Penn State University
EP

Eun-A Park

University of New Haven

Moderators
avatar for Gregory Lowe

Gregory Lowe

University of Tampere
Gregory Ferrell Lowe (Ph.D. 1992, University of Texas at Austin) is Professor of Media Management at the University of Tampere in Finland. He designed the curriculum for this international graduate studies program and previously worked as Senior Advisor in Corporate Strategy and Development (1997-2007) for the Finnish public service broadcasting corporation, Yle. He founded the RIPE initiative in 2000, an international network for collaborative... Read More →


Tuesday May 3, 2016 4:30pm - 4:50pm
Room 407 Law School
  • Manuscript # 1023
  • Session # A34

Attendees (7)