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Estimating demand for cellular phone services in Japan

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Author Info

  • Iimi, Atsushi

Abstract

Since the 1990s, the telecommunications industry has changed dramatically with the wide diffusion of mobile telecommunications. In spite of this, the nature of the cellular phone market has not yet been explored sufficiently. This paper analyzes the demand for cellular phone services using data on the Japanese cellular phone market in the late 1990s. It finds that the market is highly product-differentiated and conventional network externalities are no longer decisive factors in choosing a mobile phone carrier. The evidence also shows that the demand for cellular phone services is quite price-elastic, with estimated elasticity from 1.30 to 2.43 in absolute value.

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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 29 (2005)
Issue (Month): 1 (February)
Pages: 3-23

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Handle: RePEc:eee:telpol:v:29:y:2005:i:1:p:3-23

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Related research

Keywords: Mobile telecommunications Demand estimation Price elasticity Product differentiation Network externalities Nested logit model;

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Cited by:
  1. Heutel, Garth & Muehlegger, Erich J., 2010. "Consumer Learning and Hybrid Vehicle Adoption," Scholarly Articles 4448996, Harvard Kennedy School of Government.
  2. Junseok Hwang & Dongook Choi & Jongeun Oh & Yeonbae Kim, 2009. "Competition in the Korean Internet Portal Market: Network Effects, Profit, and Market Efficiency," TEMEP Discussion Papers 200925, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
  3. Daniel Sperber & Alan Shiell & Ken Fyie, 2010. "The cost-effectiveness of a law banning the use of cellular phones by drivers," Health Economics, John Wiley & Sons, Ltd., vol. 19(10), pages 1212-1225.
  4. Mitsuru Sunada, 2008. "Network effects with quality change: an empirical analysis of the Japanese mobile telecommunications market, 1995-2001," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 657-674.
  5. Naoki Watanabe & Ryo Nakajima & Takanori Ida, 2010. "Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers’ Strategies," Review of Industrial Organization, Springer, vol. 36(4), pages 391-412, June.
  6. Ting Zhu & Hongju Liu & Pradeep Chintagunta, 2011. "Wireless Carriers’ Exclusive Handset Arrangements: An Empirical Look at the iPhone," Working Papers 11-35, NET Institute, revised Oct 2011.
  7. Dongook Choi & Yeonbae Kim, 2010. "Effects of Piracy and Digital Rights Management on the Online Music Market in Korea," TEMEP Discussion Papers 201072, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2010.
  8. Akematsu, Yuji & Abu, Sheikh Taher & Tsuji, Masatsugu, 2010. "Empirical Study of Effect of Deregulation, Competition, and Contents on Mobile Phone Diffusion: Case of the Japanese 3G Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 1, International Telecommunications Society (ITS).
  9. Chen-Ju Lin & Ci-Rong Li & Chih-Peng Chu, 2011. "The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(4), pages 829-843, June.
  10. World Bank, 2009. "Macedonia - Moving to Faster and More Inclusive Growth A Country Economic Memorandum : Main Report and Annex," World Bank Other Operational Studies 3067, The World Bank.

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