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Demand elasticities for international message telephone service

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  • George Ford
  • John Jackson

Abstract

Using a point-to-point model of toll demand, this paper provides estimates of own-price demand elasticities for international message telephone service. The study improves on previous studies by using more recent data and endogenizing price. Consistent with earlier studies, the demand for IMTS is found to be price inelastic, about -0.28 on average, in the short-run and near unitary elastic, -1.04 on average, in the long run. Both the level and the elasticity of demand are found to be positively related to the size of the telephone network. The own-price elasticity of demand for a select group of countries is provided.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269439
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 14 ()
Pages: 1523-1527

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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1523-1527

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References

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  1. Acton, Jan Paul & Vogelsang, Ingo, 1992. "Telephone Demand over the Atlantic: Evidence from Country-Pair Data," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 305-23, September.
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Cited by:
  1. Madden, Gary & Savage, Scott J. & Tipping, Craig, 2001. "Understanding European Union international message telephone services demand," Information Economics and Policy, Elsevier, vol. 13(2), pages 127-136, June.
  2. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant, 2002. "Forecasting United States-Asia international message telephone service," International Journal of Forecasting, Elsevier, vol. 18(4), pages 523-543.
  3. James Alleman & Gary Madden & Scott Savage, 2003. "Dominant carrier market power in US international telephone markets," Applied Economics, Taylor & Francis Journals, vol. 35(6), pages 665-673.

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