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The Complementarity between Calls and Messages in Mobile Telephony

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Author Info
Lukasz Grzybowski () (University of Alicante)
Pedro Pereira () (Autoridade da Concorrência)

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Abstract

This article estimates the price elasticities of the demand for mobile telephone calls and the demand for messages for Portugal. We use a panel of individual level data. In order to account for the unobserved individual heterogeneity and for the data censoring, we estimate a Tobit model for panel data with individual random effects. The demand for calls and the demand for messages are inelastic. Calls and messages are complements.

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File URL: http://www.concorrencia.pt/download/WP27_CallsMessages.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Portuguese Competition Authority in its series Working Papers with number 27.

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Length: 19 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:pca:wpaper:27

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Related research
Keywords: Mobile Telephony Price Elasticities SMS Complementarity

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Carlos Martins-Filho & John W. Mayo, 1993. "Demand and Pricing of Telecommunications Services: Evidence and Welfare Implications," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 439-454, Autumn. [Downloadable!] (restricted)
  2. Park, Rolla Edward & Wetzel, Bruce M & Mitchell, Bridger M, 1983. "Price Elasticities for Local Telephone Calls," Econometrica, Econometric Society, vol. 51(6), pages 1699-730, November. [Downloadable!] (restricted)
  3. Greene, William, 1999. "Marginal effects in the censored regression model," Economics Letters, Elsevier, vol. 64(1), pages 43-49, July. [Downloadable!] (restricted)
    Other versions:
  4. Madden, Gary G & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," MPRA Paper 10829, University Library of Munich, Germany. [Downloadable!]
  5. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October. [Downloadable!] (restricted)
  6. Bidwell, Miles O, Jr & Wang, Bruce X & Zona, J Douglas, 1995. "An Analysis of Asymmetric Demand Response to Price Changes: The Case of Local Telephone Calls," Journal of Regulatory Economics, Springer, vol. 8(3), pages 285-98, November.
  7. Andersson, Kjetil & Foros, Øystein & Steen, Frode, 2006. "Text and Voice: Complements, Substitutes or Both?," CEPR Discussion Papers 5780, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring. [Downloadable!] (restricted)
  9. Kridel, Donald J. & Rappoport, Paul N. & Taylor, Lester D., 2002. "IntraLATA long-distance demand: carrier choice, usage demand and price elasticities," International Journal of Forecasting, Elsevier, vol. 18(4), pages 545-559. [Downloadable!] (restricted)
  10. Heitfield, Erik & Levy, Armando, 2001. "Parametric, semi-parametric and non-parametric models of telecommunications demand: An investigation of residential calling patterns," Information Economics and Policy, Elsevier, vol. 13(3), pages 311-329, September. [Downloadable!] (restricted)
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