Cyclical price fluctuations caused by information inertia : evidence from the German call-by-call telephone market

Arbeitspapier

The 2002 prices of suppliers in German call-by-call telephone market are rather dispersed, out-of-phase (uncorrelated), and show systematic down-up movements. In 2004, these prices are less dispersed, more in-phase and show more upwards runs than downs-ups. In both years, we clearly do not observe Edgeworth cycles where prices move in parallel (in-phase). We present a model with demand inertia, caused by incomplete information about prices, where (out-of-phase and in-phase) cycles as well as competitive equilibria and tacit collusion equilibria exist. The transition from the 2002 cycles in the German call-by-call market to more constant prices in 2004 may be due to parameter changes, such as customers possessing improved information.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper ; No. 225

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
• Thema: Price cycles ; incomplete information ; telephone market ; Telekommunikationsgebühr ; Volatilität ; Cobweb ; Unvollkommene Information ; Konsumentenverhalten ; Informationsverhalten ; Theorie ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Baier, Antje ; Bolle, Friedel
• Ereignis: Veröffentlichung
• (wer): European University Viadrina, Department of Business Administration and Economics
• (wo): Frankfurt (Oder)
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/23798
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ