When European consumers could finally use their mobile phones while traveling abroad, wireless users who roamed outside their home countries were sometimes shocked to return home to see very large mobile phone bills. These high bills resulted from roaming charges imposed by their home wireless carrier for using wireless networks in other countries. In 2016, the European Union (EU) imposed limits on roaming charges for mobile phones. What sources of market failure are most likely to be their justification for intervention? Select one: a. Network effects and economies of scale b. Economies of scale and learning effects c. Taste-based loyalty and uninformed consumers d. Uninformed consumers and switching costs e. Proprietary technology and switching costs
d. Uninformed consumers and switching costs
The market failure resulted based on the unawareness of the consumers and the switching cost they have to incur while travelling with the mobile phones.
When European consumers could finally use their mobile phones while traveling abroad, wireless users who roamed...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...