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Understanding European Union international message telephone services demand

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  • Madden, Gary G
  • Savage, Scott J
  • Tipping, Craig

Abstract

This study provides a contemporary understanding of demand relations in European Union (EU) international message telephone service (IMTS) markets prior to full liberalization at January 1 1998. Point-to-point demand equations that relate IMTS demand to prices, income, population and distance are estimated on bilateral market data for ten EU countries from 1990 to 1995. Model estimates suggest price elasticities of outgoing and incoming demand between 20.175 and 20.456, and 20.215 and 20.674, respectively. These elasticity estimates provide an empirical base from which to calculate welfare gains from the full deregulation of EU IMTS markets after 1998.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10918.

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Date of creation: 2001
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Handle: RePEc:pra:mprapa:10918

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Keywords: Elasticity; European Union; International telephone demand;

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  1. anonymous, 1978. "Communication," Management Science, INFORMS, vol. 24(9), pages 919-919, May.
  2. 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.
  3. Lago, Armando M, 1970. "Demand Forecasting Models of International Telecommunications and their Policy Implications," Journal of Industrial Economics, Wiley Blackwell, vol. 19(1), pages 6-21, November.
  4. Kiessling, T & Blondeel, Y, 1998. "The EU regulatory framework in telecommunications: A critical analysis," Telecommunications Policy, Elsevier, vol. 22(7), pages 571-592, August.
  5. George Ford & John Jackson, 2004. "Demand elasticities for international message telephone service," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1523-1527.
  6. 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.
  7. Rea, John D & Lage, Gerald M, 1978. "Estimates of Demand Elasticities for International Telecommunications Services," Journal of Industrial Economics, Wiley Blackwell, vol. 26(4), pages 363-81, June.
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Cited by:
  1. Jason Pearcy & Scott J. Savage, 2009. "The Effects of International Simple Resale on Prices in International Telecommunications Markets," Working Papers 09-19, NET Institute, revised Sep 2009.
  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.

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