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Dyad Calling Behavior: Asymmetric Power and Tie Strength Dynamics

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Abstract

We develop a model of dyad calling behavior as the outcome of asymmetric power between the initiating and receiving callers and the strength of their tie. Using a unique mobile phone service dataset, we estimate the model which encapsulates the evolving relationship between pairs of callers. We find that, first, the initiating callers enjoy more power than the receiving callers in determining the call volume. Second, the call volume between a pair of callers increases with the number of their common contacts. Finally, the reciprocity effect is prevalent in mobile phone service consumption. We discuss and demonstrate the implications of our results on firms' telecommunication service pricing decisions. (C) 2018 Direct Marketing Educational Foundation, Inc. dba Marketing EDGE. All rights reserved.

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[Shi, Mengze] Univ Toronto, Rotman Sch Management, 105 St George St, Toronto, ON M5S 3E6, Canada

[Yang, Botao] Univ Southern Calif, Marshall Sch Management, 3670 Trousdale Pkwy, Los Angeles, CA 90089 USA

[Chiang, Jeongwen] CEIBS, Shanghai, Peoples R China


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Source

Journal of Interactive Marketing

ISSN:1094-9968

Year:2018

Volume:42

Page:63-79

ESI Discipline:ECONOMICS & BUSINESS;

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