Competition in Turkish mobile telecommunications markets: Price elasticities and network substitution
AbstractThis paper estimates demand elasticities for Turkish mobile telecommunications markets. In contrast to most other studies, firm-level data is used to estimate dynamic panel data models including instrumental variable techniques. Both short- and long-run elasticities are calculated, yielding a long-run price elasticity of -0.72 for the post-paid market and of -0.33 for the pre-paid market. The short-run price elasticity is estimated to be -0.36 for the post-paid market and -0.20 for the pre-paid market. In addition, there is evidence of fixed-to-mobile traffic substitution for consumers who use pre-paid cards.
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Bibliographic InfoArticle provided by Elsevier in its journal Telecommunications Policy.
Volume (Year): 35 (2011)
Issue (Month): 2 (March)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description
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- Covadonga Gijón Tascón & Teresa Garín-Muñoz, & Teodosio Pérez-Amaral, 2012. "Satisfaction and protection of individual mobile telecommunications consumers," Documentos del Instituto Complutense de AnÃ¡lisis EconÃ³mico 2012-21, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
- Karaçuka, Mehmet & Çatik, A. Nazif & Haucap, Justus, 2012. "Consumer choice and local network effects in mobile telecommunications in Turkey," DICE Discussion Papers 70, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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