Innovative pricing effects: theory and practice in mobile Internet networks

Multidimensional products, such as telecommunications, often distinguish themselves by a considerable number of spillovers. The creator of the spillovers wants to commercialize the spillovers but cannot if the parameters on which the ability to charge is proprietary to another firm in the economy. These actors then need to agree upon an efficient pricing contract to be able to charge. As an effect, the direction of revenue in the transaction may not be self‐evident, turning previous customers into suppliers and vice versa. The paper presents data from the mobile Internet market to validate this claim empirically and make suggestions of possible solutions to the pricing problem facing these actors with the introduction of mobile multimedia.