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The Analysis of Market Efficiency: A Case of Bundling Telecomm Services

Directory : Faculty : Intellectual Contributions

Intellectual Contribution by Yikuan Lee

Contribution Title

The Analysis of Market Efficiency: A Case of Bundling Telecomm Services

Conference

of the 1999 IEEE EMS Mgmt. Conference-Pioneering New Technologies at Puerto Rico, May 1999.

Year

1999

Description

This study presents an economic model based on demand function to analyze the benefits of bun-dling on three telecomm services (local, interstate, and intrastate calls) from 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 re-duces the transaction cost to the customers in the market.

Complete Citation

"The Analysis of Market Efficiency: A Case of Bundling Telecomm Services," co-authored with John R. Norsworthy, Proceedings of the 1999 IEEE EMS Mgmt. Conference-Pioneering New Technologies at Puerto Rico, May 1999.

Website

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