Price competition and the Bertrand model: The paradox of the German mobile discount market

D. Kaimann, B. Hoyer, Applied Economics Letters 26 (2018) 54–57.

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Abstract
We investigate the degree of price competition among telecommunication firms. Underlying a Bertrand model of price competition, we empirically model pricing behaviour in an oligopoly. We analyse panel data of individual pricing information of mobile phone contracts offered between 2011 and 2017. We provide empirical evidence that price differences as well as reputational effects serve as a signal to buyers and significantly affect market demand. Additionally, we find that brands lead to an increase in demand and thus are able to generate spillover effects even after price increase.
Publishing Year
Journal Title
Applied Economics Letters
Volume
26
Issue
1
Page
54-57
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Kaimann D, Hoyer B. Price competition and the Bertrand model: The paradox of the German mobile discount market. Applied Economics Letters. 2018;26(1):54-57. doi:10.1080/13504851.2018.1436141
Kaimann, D., & Hoyer, B. (2018). Price competition and the Bertrand model: The paradox of the German mobile discount market. Applied Economics Letters, 26(1), 54–57. https://doi.org/10.1080/13504851.2018.1436141
@article{Kaimann_Hoyer_2018, title={Price competition and the Bertrand model: The paradox of the German mobile discount market}, volume={26}, DOI={10.1080/13504851.2018.1436141}, number={1}, journal={Applied Economics Letters}, publisher={Taylor and Francis Online}, author={Kaimann, Daniel and Hoyer, Britta}, year={2018}, pages={54–57} }
Kaimann, Daniel, and Britta Hoyer. “Price Competition and the Bertrand Model: The Paradox of the German Mobile Discount Market.” Applied Economics Letters 26, no. 1 (2018): 54–57. https://doi.org/10.1080/13504851.2018.1436141.
D. Kaimann and B. Hoyer, “Price competition and the Bertrand model: The paradox of the German mobile discount market,” Applied Economics Letters, vol. 26, no. 1, pp. 54–57, 2018.
Kaimann, Daniel, and Britta Hoyer. “Price Competition and the Bertrand Model: The Paradox of the German Mobile Discount Market.” Applied Economics Letters, vol. 26, no. 1, Taylor and Francis Online, 2018, pp. 54–57, doi:10.1080/13504851.2018.1436141.
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