Simulating Discount-Pricing Strategies for the GSM-Mobile Market

Sven Schade (), Thorsten Frey () and Nezar Mahmoud ()

Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, 2009, vol. 1, issue 4, 289-300

Abstract: The article analyzes network effects on the German GSM mobile telephony market. The authors use an ACE-approach to examine how a new competitor can successfully gain ground in the market with a discount-pricing strategy. In particular they study the impact of several elements of a mobile phone contract like on-net-, landline- or off-net-fees on the competitor’s market share. It turns out that it is possible to successfully enter the market with a prepaid contract using a discount-pricing strategy where the single fees only marginally exceed the termination rates, which have to be transferred to foreign network operators. Copyright Gabler Verlag 2009

Keywords: Network effects; Mobile telecommunication; Agent-based computational economics; Pricing strategies (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s12599-009-0057-0

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