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The complementarity between calls and messages in mobile telephony

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  • Grzybowski, Lukasz
  • Pereira, Pedro

Abstract

This article estimates the price elasticities of the demand for mobile telephone calls and the demand for messages for Portugal. We use a panel of individual level data. In order to account for the unobserved individual heterogeneity and for the data censoring, we estimate a Tobit model for panel data with individual random effects. The demand for calls and the demand for messages are inelastic. Calls and messages are complements.

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Bibliographic Info

Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 20 (2008)
Issue (Month): 3 (September)
Pages: 279-287

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Handle: RePEc:eee:iepoli:v:20:y:2008:i:3:p:279-287

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Web page: http://www.elsevier.com/locate/inca/505549

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References

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  1. William Greene, 1998. "Marginal Effects in the Censored Regression Model," Working Papers 98-05, New York University, Leonard N. Stern School of Business, Department of Economics.
  2. Rappoport, Paul N. & Taylor, Lester D., 1997. "Toll price elasticities estimated from a sample of U.S. residential telephone bills," Information Economics and Policy, Elsevier, vol. 9(1), pages 51-70, March.
  3. Kridel, Donald J. & Rappoport, Paul N. & Taylor, Lester D., 2002. "IntraLATA long-distance demand: carrier choice, usage demand and price elasticities," International Journal of Forecasting, Elsevier, vol. 18(4), pages 545-559.
  4. Heitfield, Erik & Levy, Armando, 2001. "Parametric, semi-parametric and non-parametric models of telecommunications demand: An investigation of residential calling patterns," Information Economics and Policy, Elsevier, vol. 13(3), pages 311-329, September.
  5. Rodini, Mark & Ward, Michael R. & Woroch, Glenn A., 0. "Going mobile: substitutability between fixed and mobile access," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 457-476, June.
  6. K. Andersson & � Foros & F. Steen, 2009. "Text and voice: complements, substitutes or both?," Industrial and Corporate Change, Oxford University Press, vol. 18(6), pages 1231-1247, December.
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Cited by:
  1. Lukasz Grzybowski & Pedro Pereira, 2011. "Subscription Choices and Switching Costs in Mobile Telephony," Review of Industrial Organization, Springer, vol. 38(1), pages 23-42, January.
  2. Lukasz Grzybowski & Pedro Pereira, 2007. "Merger Simulation in Mobile Telephony in Portugal," Review of Industrial Organization, Springer, vol. 31(3), pages 205-220, November.
  3. Zucchini, Leon & Kretschmer, Tobias, 2011. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," Discussion Papers in Business Administration 12308, University of Munich, Munich School of Management.
  4. Basalisco, Bruno, 2012. "The effect of user interaction on the demand for mobile text messages: Evidence from cross-country data," Information Economics and Policy, Elsevier, vol. 24(2), pages 132-144.
  5. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.

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