Performance comparison of two diffusion models in a saturated mobile phone market

This research examines a performance comparison of the Lotka-Volterra (LV) and extended Bass models in the saturated mobile phone market of the Republic of Korea. A three species LV model is developed and applied to Korean mobile phone service providers in terms of competitive impact. Fitting the historical data of the Korean mobile communication service market, the results show that the goodness of fit of the three species LV model in the case of competition among three companies is better than that of the extended Bass model. The advantages and disadvantages of the two models are discussed based on the results of empirical tests.