Hedonic Prices in the German Market for Mobile Phones

University FAF Economics Working Paper No. 29

15 Pages Posted: 20 Sep 2004

See all articles by Ralf Dewenter

Ralf Dewenter

University of the Federal Armed Forces Hamburg - Department of Economics

Justus Haucap

Heinrich Heine University Dusseldorf - Department of Economics; German Institute for Economic Research (DIW Berlin)

Ricardo Luther

University of Federal Armed Forces Hamburg - Institute for Economic Policy

Peter Roetzel

Ruhr-Universität Bochum

Date Written: September 2004

Abstract

This paper provides a hedonic price analysis of mobile telephones for the German market. We have assembled data on 302 different handsets from 25 manufacturers over the period from May 1998 to November 2003. While volume has a negative effect on the price of a mobile handset, the number of ringtones and the talk time battery life relative to the handset's weight positively affect mobile phone prices. Maybe somewhat surprisingly, radiation is statistically not significant. Also handsets have become cheaper over time, and handsets with additional features, such as MMS, MP3 or Bluetooth, command a higher price. In addition, we found positive brand name effects for LG, Nokia, Motorola and Samsung, but not for Siemens or Sony. According to our estimations the former firms' brand name premiums may range from 57 to 172 Euros.

Keywords: Hedonic Price Analysis, Mobile Phones, Telecommunications

JEL Classification: D40, L96

Suggested Citation

Dewenter, Ralf and Haucap, Justus and Luther, Ricardo and Roetzel, Peter, Hedonic Prices in the German Market for Mobile Phones (September 2004). University FAF Economics Working Paper No. 29, Available at SSRN: https://ssrn.com/abstract=592841 or http://dx.doi.org/10.2139/ssrn.592841

Ralf Dewenter

University of the Federal Armed Forces Hamburg - Department of Economics ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

Justus Haucap (Contact Author)

Heinrich Heine University Dusseldorf - Department of Economics ( email )

Duesseldorf
Germany

HOME PAGE: http://www.dice.uni-duesseldorf.de

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Ricardo Luther

University of Federal Armed Forces Hamburg - Institute for Economic Policy ( email )

Holstenhofweg 85
Hamburg, 22043
Germany

Peter Roetzel

Ruhr-Universität Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
434
Abstract Views
4,071
rank
75,401
PlumX Metrics