The Complementarity between Calls and Messages in Mobile Telephony
AbstractThis 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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Bibliographic InfoPaper provided by Portuguese Competition Authority in its series Working Papers with number 27.
Length: 19 pages
Date of creation: Jul 2007
Date of revision:
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More information through EDIRC
Mobile Telephony; Price Elasticities; SMS; Complementarity;
Other versions of this item:
- Grzybowski, Lukasz & Pereira, Pedro, 2008. "The complementarity between calls and messages in mobile telephony," Information Economics and Policy, Elsevier, vol. 20(3), pages 279-287, September.
- 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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