Due to the speed of technological advances nowadays, it is increasing difficult for anyone to predict the marketing strategy for an electronic device. As for telephones today, they are becoming more and more sophisticated in both capabilities and application of these capabilities. A potential buyer is nevertheless confronted with decisions – cordless or non-cordless, caller ID or no caller ID and so on. Well, by analyzing this market through an economist’s point of view, the quality of product almost always grow directly according to price. To analyze the 1999 phone market fully using the neoclassi