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Understanding European Union international message telephone services demand

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  • Madden, Gary
  • Savage, Scott J.
  • Tipping, Craig

Abstract

This study provides a contemporary understanding of demand relations in European Union (EU) international message telephone service (IMTS) markets prior to full liberalization at January 1 1998. Point-to-point demand equations that relate IMTS demand to prices, income, population and distance are estimated on bilateral market data for ten EU countries from 1990 to 1995. Model estimates suggest price elasticities of outgoing and incoming demand between 20.175 and 20.456, and 20.215 and 20.674, respectively. These elasticity estimates provide an empirical base from which to calculate welfare gains from the full deregulation of EU IMTS markets after 1998.
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  • Madden, Gary & Savage, Scott J. & Tipping, Craig, 2001. "Understanding European Union international message telephone services demand," Information Economics and Policy, Elsevier, vol. 13(2), pages 127-136, June.
    • Handle: RePEc:eee:iepoli:v:13:y:2001:i:2:p:127-136
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    1. Appelbe, T. W. & Snihur, N. A. & Dineen, C. & Farnes, D. & Giordano, R., 1988. "Point-to-point modelling: An application to Canada-Canada and Canada-United States long distance calling," Information Economics and Policy, Elsevier, vol. 3(4), pages 311-331.
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    Cited by:

    1. Jason Pearcy & Scott J. Savage, 2009. "The Effects of International Simple Resale on Prices in International Telecommunications Markets," Working Papers 09-19, NET Institute, revised Sep 2009.
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    3. Mayo, John W. & Ukhaneva, Olga, 2017. "International telecommunications demand," Information Economics and Policy, Elsevier, vol. 39(C), pages 26-35.

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    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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