Network effects, network structure and consumer interaction in mobile telecommunications in Europe and Asia

Daniel Birke, G.M. Peter Swann

Research output: Contribution to journalArticle

Abstract

This paper estimates the importance of (tariff-mediated) network effects and the impact of a consumer's social network on her choice of mobile phone provider. The study uses network data obtained from surveys of students in several European and Asian countries. We use the Quadratic Assignment Procedure, a non-parametric permutation test, to adjust for the particular error structure of network data. We find that respondents strongly coordinate their choice of mobile phone providers, but only if their provider induces network effects. This suggests that this coordination depends on network effects rather than on information contagion or pressure to conform to the social environment.
Original languageEnglish
Pages (from-to)153-167
Number of pages15
JournalJournal of Economic Behavior and Organization
Volume76
Issue number2
Early online date30 Jun 2010
DOIs
Publication statusPublished - Nov 2010

Keywords

  • network effects
  • social networks
  • mobile telecommunications
  • qap

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