Title: Problems in launching the mobile internet: Evidence from a pricing experiment
Authors: Gao, Maija ×
Hyytinen, Ari
Toivanen, Otto #
Issue Date: 2014
Publisher: MIT Press
Series Title: Journal of Economics & Management Strategy vol:23 issue:3 pages:483-506
Abstract: Commercialization of innovations frequently stumbles. A prominent recent example is the early (i.e. pre-3G) mobile phone-enabled Internet services, whose European take-up was slower than expected. To determine why, we build a structural model of demand for such services and estimate it using consumer-level panel data from a pricing experiment. The experiment allows a decomposi-tion of the number of wireless connections into the number of needs - instances where a consumer would establish a connection if the price were zero - and the conditional probability of establishing a connection. We find that needs were plenty and potential consumer surplus several magnitudes higher than that attained. We find that pricing reduced usage substantially and explore potential reasons for the high prices.
ISSN: 1058-6407
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

Files in This Item:

There are no files associated with this item.

Request a copy


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science