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Techno-economic price-worthiness of mobile networks: a hedonic heuristic perspective

Author

Listed:
  • Perambur S. Neelakanta

    (Florida Atlantic University
    Florida Atlantic University)

  • Aziz U. Noori

    (Florida Atlantic University)

Abstract

The present study is conceived to develop a model based on hedonic heuristics to deduce a performance index of service products offered by modern mobile telecommunication operators. The index so obtained includes the associated “price-worthiness” (value-for-money) aspects of the services; and, it is adopted to compare and evaluate the relative performance of competitive mobile networks deployed in a service area, supporting App-intense, smart, mobile-devices concomitant to traditional feature phones. Relevant operational details (such as technology-centric mobile-speed parameter of the services rendered) and the associated economic considerations are fused judiciously with hedonic perspectives of the users, in order to infer an overall performance metric for the mobile networks in question. Data availed from typical service areas in the U.S. relevant to specific mobile networks are gathered and a comparison of services rendered is made using the proposed measure. The measure of hedonic considerations specified here as the hedonic pricing index (HPI) leads to corresponding results on price-worthiness of underlying service products versus the techno-economic features; and, relevant aspects of certain incumbent networks in a selected service area in the U.S. are deduced, compared and discussed. Foreseeable limitations of HPI in ascertaining the mobile service performance are identified and discussed.

Suggested Citation

  • Perambur S. Neelakanta & Aziz U. Noori, 2021. "Techno-economic price-worthiness of mobile networks: a hedonic heuristic perspective," Netnomics, Springer, vol. 22(2), pages 85-113, December.
    • Handle: RePEc:kap:netnom:v:22:y:2021:i:2:d:10.1007_s11066-021-09149-9
    DOI: 10.1007/s11066-021-09149-9
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    References listed on IDEAS

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    1. Perambur Neelakanta & Renata Sardenberg, 2011. "Consumer benefit versus price elasticity of demand: a nonlinear complex system model of pricing internet services on QoS-centric architecture," Netnomics, Springer, vol. 12(1), pages 31-60, April.
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    5. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    6. Perambur Neelakanta & Aziz Noori, 2015. "Technoeconomic performance of wireless networks supporting smart mobile devices and services: Evaluation of technology-centric cum marketing performance indicators," Netnomics, Springer, vol. 16(1), pages 53-85, August.
    7. Brent R. Moulton, 2001. "The Expanding Role of Hedonic Methods in the Official Statistics of the United States," BEA Papers 0018, Bureau of Economic Analysis.
    8. Sayed Mahdi Mostafavi & Somaye Sadat Roohbakhsh & Mehdi Behname, 2013. "Hedonic Price Function Estimation for Mobile Phone in Iran," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 202-205.
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