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Estimation of Price Elasticities for International Telecommunications Demand

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Author Info
Christos Agiakloglou
Demetrius Yannelis

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Abstract

This paper examines the effect of price per call minute on international telecommunications demand for calls made from Greece to five destination countries: Australia, the USA, Canada, the UK, and Germany. For this purpose the authors consider two different models, one with constant price elasticity, the log-linear demand function, and another one with time varying price elasticity, log-linear demand where all variables except price are in logarithms. These models were estimated for calls made during peak and off-peak periods, using quarterly data from 1997:I to 2003:IV. The outgoing traffic includes volume of calls in minutes made by the incumbent only and by the incumbent and the mobile providers. Copyright International Atlantic Economic Society 2006

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File URL: http://hdl.handle.net/10.1007/s11294-005-2279-3
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Publisher Info
Article provided by Springer in its journal International Advances in Economic Research.

Volume (Year): 12 (2006)
Issue (Month): 1 (February)
Pages: 131-137
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Handle: RePEc:kap:iaecre:v:12:y:2006:i:1:p:131-137

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Web page: http://www.springerlink.com/link.asp?id=112112

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Related research
Keywords: C22; L96;

References listed on IDEAS
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  1. Bewley, Ronald & Fiebig, Denzil G, 1988. "Estimation of Price Elasticities for an International Telephone Demand Model," Journal of Industrial Economics, Blackwell Publishing, vol. 36(4), pages 393-409, June. [Downloadable!] (restricted)
  2. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March. [Downloadable!] (restricted)
  3. Gary Madden & Scott J. Savage, 2000. "Market Structure, Competition, and Pricing in United States International Telephone Service Markets," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 291-296, May. [Downloadable!] (restricted)
  4. Lago, Armando M, 1970. "Demand Forecasting Models of International Telecommunications and their Policy Implications," Journal of Industrial Economics, Blackwell Publishing, vol. 19(1), pages 6-21, November. [Downloadable!] (restricted)
  5. Wright, Julian, 1999. "International Telecommunications, Settlement Rates, and the FCC," Journal of Regulatory Economics, Springer, vol. 15(3), pages 267-91, May. [Downloadable!] (restricted)
  6. Hackl, Peter & Westlund, Anders H., 1995. "On price elasticities of international telecommunication demand," Information Economics and Policy, Elsevier, vol. 7(1), pages 27-36, April. [Downloadable!] (restricted)
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