engleski

Determinants of Three-Part Cell Phone Plan Prices: A Hedonic Price Model

Measuring changes of cell phone plan price and quality is a complex problem in the rapidly developing field of telecommunications. This is because, by using traditional matched-model approaches, cell phone plans cannot be directly compared due to differences in their characteristics. To avoid this, a possible solution is the hedonic price model that analyzes the effect of product’s characteristics on its price. Therefore, the main focus of this paper is to explore the underlying characteristics that define cell phone plans, as a first step in the specification of hedonic price model. The results suggest that the most important variables that affect cell phone plan price are free minutes, free messages, free megabytes, absence of connection fee, and Ramsey pricing. These results may help to improve hedonistic price model for measuring changes in cell phone plan price and quality, so it can be routinely used by the statistical offices, regulatory bodies and other researchers alike.

Hedonic model; price; determinants; cell phone plan

nije evidentirano