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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

For corrections or technical questions regarding this item, or to correct its listing, contact: (Jeroen Loos).

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References

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  1. 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.
  2. Carlos Martins-Filho & John W. Mayo, 1993. "Demand and Pricing of Telecommunications Services: Evidence and Welfare Implications," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 439-454, Autumn.
  3. Park, Rolla Edward & Wetzel, Bruce M & Mitchell, Bridger M, 1983. "Price Elasticities for Local Telephone Calls," Econometrica, Econometric Society, vol. 51(6), pages 1699-730, November.
  4. Greene, William, 1999. "Marginal effects in the censored regression model," Economics Letters, Elsevier, vol. 64(1), pages 43-49, July.
  5. Madden, Gary G & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," MPRA Paper 10829, University Library of Munich, Germany.
  6. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October.
  7. K. Andersson & Ø 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.
  8. Bidwell, Miles O, Jr & Wang, Bruce X & Zona, J Douglas, 1995. "An Analysis of Asymmetric Demand Response to Price Changes: The Case of Local Telephone Calls," Journal of Regulatory Economics, Springer, vol. 8(3), pages 285-98, November.
  9. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring.
  10. 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.
  11. 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.
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Citations

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Cited by:
  1. 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.
  2. Leon Zucchini & Tobias Kretschmer, 2012. "Competitive Pressure: Competitive Dynamics as Reactions to Multiple Rivals," DRUID Working Papers 12-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  3. 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.

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