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Discrete Choice Analysis of Demand for Broadband in Japan

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Author Info

  • Takanori Ida

    ()

  • Toshifumi Kuroda

    ()

Abstract

The remarkable development of Japan’s broadband (BB) market has attracted attention worldwide. This paper is one of the first to analyze Japan’s BB demand (including FTTH) using a discrete choice model. Our main conclusions are first, there is a distinction between narrowband (NB) and BB services based on a nested choice structure. Second, considering own-price elasticities of access demand, ADSL is inelastic, but FTTH and CATV are elastic. Third, in ADSL submarkets, low-speed and high-speed ADSL are becoming more elastic. Copyright Springer Science+Business Media, Inc. 2006

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File URL: http://hdl.handle.net/10.1007/s11149-005-5124-y
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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 29 (2006)
Issue (Month): 1 (01)
Pages: 5-22

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Handle: RePEc:kap:regeco:v:29:y:2006:i:1:p:5-22

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Web page: http://www.springerlink.com/link.asp?id=100298

Related research

Keywords: broadband; discrete choice; nested logit; price elasticity; L52; L86; L96;

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References

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  1. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457 Elsevier.
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Citations

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Cited by:
  1. Manit Satitsamitpong & Tokio Otsuka & Toshiya Jitsuzumi & Hitoshi Mitomo, 2012. "An Analysis of Demand-based Factors for Broadband Migration," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 19(2), pages 1-17, December.
  2. Sunada, Mitsuru & Noguchi, Masato & Ohashi, Hiroshi & Okada, Yosuke, 2011. "Coverage area expansion, customer switching, and household profiles in the Japanese broadband access market," Information Economics and Policy, Elsevier, vol. 23(1), pages 12-23, March.
  3. Pichitkul, Araya & Mitomo, Hitoshi, 2012. "Demand for internet: Empirical comparison between urban and rural subscribers in Thailand," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72505, International Telecommunications Society (ITS).
  4. 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).
  5. Goto, Hisanori & Goto, Mika & Sueyoshi, Toshiyuki, 2011. "Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan," Energy Economics, Elsevier, vol. 33(2), pages 195-208, March.
  6. Mélisande Cardona & Anton Schwarz & B. Yurtoglu & Christine Zulehner, 2009. "Demand estimation and market definition for broadband Internet services," Journal of Regulatory Economics, Springer, vol. 35(1), pages 70-95, February.
  7. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2009. "Whither Broadband Policy? In Search of Selective Intervention," Department of Economics University of Siena 567, Department of Economics, University of Siena.
  8. Filippo Belloc & Antonio Nicita & Maria Alessandra Rossi, 2011. "The Nature, Timing and Impact of Broadband Policies: a Panel Analysis of 30 OECD Countries," Department of Economics University of Siena 615, Department of Economics, University of Siena.
  9. Akematsu, Yuji & Shinohara, Sobee & Tsuji, Masatsugu, 2012. "Factors of FTTH deployment in Japan: A panel data analysis," 23rd European Regional ITS Conference, Vienna 2012 60361, International Telecommunications Society (ITS).

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