The analysis of market efficiency: a case of bundling telecom services

Author

Lee, Yikuan ; Norsworthy, John R.

Author_Institution

Lally Sch. of Manage. & Technol., Rensselaer Polytech. Inst., Troy, NY, USA

fYear

1998

fDate

11-13 Oct 1998

Firstpage

413

Lastpage

418

Abstract

This study presents an economic model based on demand function to analyze the benefits of bundling on three telecommunication services (local, interstate, and intrastate calls) from the customers´ perspective. The cross elasticity of demand shows that the demands of these three services are significantly correlated. In other words, all three services are complements and bundling the services might increase the consumption of each other. The results suggest that customers can benefit from one-stop-shopping because bundling reduces the transaction cost to the customers in the market

Keywords

economics; telecommunication services; demand cross elasticity; economic model; interstate calls; intrastate calls; local calls; market efficiency analysis; one-stop-shopping; telecom services bundling; transaction cost reduction; Computer aided software engineering; Costs; Cultural differences; Elasticity; Ice; Packaging; Telecommunication computing; Telecommunication services; Telephony; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Engineering and Technology Management, 1998. Pioneering New Technologies: Management Issues and Challenges in the Third Millennium. IEMC '98 Proceedings. International Conference on

Conference_Location

San Juan, PR

Print_ISBN

0-7803-5082-0

Type

conf

DOI

10.1109/IEMC.1998.727796

Filename

727796