A discussion on the mobile phone industry in Europe.
Written in 2007; 6,424 words; 22 sources; MLA; $ 148.95
Paper Summary:
This paper analyzes the structure and external factors that effect the mobile phone industry in Europe. It explains that Denmark provides an excellent example to examine the effects of price competition. Research finds that deregulation weakens the position of traditional price leaders and that new competition unseats them, if they use innovative business models. The author makes predictions about how deregulation will affect the markets in other countries using Denmark as a model. It claims that theoretical models were able to accurately predict behavior among price leaders and followers in a saturated market. The paper offers graphic representation to qualify points made.
Outline:
Current Market Characteristics
Industry History
Models of Price Leadership
The Participants of Price Leadership
Model Development
Definitions of Variables in the Linear Autoregression Model
Analysis
Conclusion
Works Cited
From the Paper:
"This model examined price leadership and followers in the mobile phone industry. However, other studies have found the same behavior and results in the online discount book market as well (Clay, Ouyang, Smith, and Wolff, 2002). The online airline industry is another example of similar pricing effects. This industry has been severely damaged by deep discount price wars. It faces similar price constraints and entry barriers as the mobile phone industry. The airline industry is another excellent example of the effect of price wars in a market that is oligopolistic in nature (Clemons, Hann, and Hitt, 2002). If these examples are any indication, it may be that the days of fixed pricing are a thing of the past (Cortese, 1998). "
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