Discovery and social learning in non-priced environments: An Austrian view of social network theory

Our purpose here is to engage in a cross-disciplinary discussion between Austrian economics and social network theory. In particular, we ask what role social networks play in the extended order in regard to both individual discovery and whether social networks can be the source of widespread unintended cooperation among individuals unknown to one another. Although Austrians have examined the function that market prices play in generating social cooperation, such discussions tend to steer clear of non-priced environments, such as interaction within social networks. We seek to explore this gap. While we acknowledge that non-price information feedback mechanisms such as status and reputation lack the calculability so crucial to market coordination, we argue that they can nonetheless mimic other important qualities of market prices and generate widespread unintended social cooperation among people unknown to one another. After a general discussion, we apply these ideas to online philanthropic communities.     

Mobile Number Portability

This paper examines the consequences of introducing mobile number portability (MNP). We show that if the sole effect of introducing MNP is the abolishment of switching costs, MNP unambiguously benefits mobile customers. However, if MNP also causes consumer ignorance, as telephone numbers no longer identify networks, mobile operators will increase termination charges, with ambiguous net effect on the surplus of mobile customers. We examine how extensions such as MNP based on call-forwarding, termination fee regulation, and alternative means of carrier identification affect these findings and discuss policy implications.     

Consumer behavior towards on-net/off-net price differentiation

This paper explores how consumers react towards price differentiation between on-net and off-net calls in mobile telecommunications - a pricing policy that is common in many mobile telecommunications markets. Based on a survey of 1044 students it is demonstrated that some consumers may suffer from a "price differentiation bias", i.e., a fair number of consumers may overestimate the savings that result from reduced on-net and/or off-net charges, as they do not appear to weigh the prices with the probabilities of placing off-net and on-net calls. This may help to explain why it have been the smaller operators in various countries who have introduced on-net/off-net price differentiation. The paper also discusses the implications that such a consumer bias may have for market competition.     

Telekommunikations regulierung: Brauchen wir noch mehr Zentralisierung?

Die Kompetenzen der EU-Kommission im Vergleich zu den Nationalstaaten im Bereich der Telekommunikationsm?rkte haben sich deutlich zugunsten der EU verschoben. Wo liegen die Vor- und Nachteile einer weiteren Zentralisierung? K?nnen die Verwaltungskompetenzen zwischen der EU-Kommission und den nationalen Regulierungsbeh?rden ?konomisch sinnvoller verteilt werden?