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Australian telephone network subscription and calling demands: evidence from a stated-preference experiment

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  • Madden, Gary
  • Bloch, Harry
  • Hensher, David

Abstract

This paper examines the impact of the subscription-calling rate structure on the demand for residential telephone network subscription and calling. Stated-preference experimental data are used to estimate demand equations. The results indicate that household network subscription and calling demands for the Sydney Metropolitan Area are affected by both rate structure and household socio-demographic variables.
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Suggested Citation

  • 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.
    • Handle: RePEc:eee:iepoli:v:5:y:1993:i:3:p:207-230
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    References listed on IDEAS

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    1. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    2. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    3. Mitchell, Bridger M, 1978. "Optimal Pricing of Local Telephone Service," American Economic Review, American Economic Association, vol. 68(4), pages 517-537, September.
    4. Lyn Squire, 1973. "Some Aspects of Optimal Pricing for Telecommunications," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 515-525, Autumn.
    5. Conlisk, John, 1979. "Design for simultaneous equations," Journal of Econometrics, Elsevier, vol. 11(1), pages 63-76, September.
    6. Conlisk, John, 1973. "Choice of Response Functional Form in Designing Subsidy Experiments," Econometrica, Econometric Society, vol. 41(4), pages 643-656, July.
    7. Park, Rolla Edward & Wetzel, Bruce M & Mitchell, Bridger M, 1983. "Price Elasticities for Local Telephone Calls," Econometrica, Econometric Society, vol. 51(6), pages 1699-1730, November.
    8. Aigner, Dennis J., 1979. "A brief introduction to the methodology of optimal experimental design," Journal of Econometrics, Elsevier, vol. 11(1), pages 7-26, September.
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    Cited by:

    1. Sergio Da Silva & Gustavo Manfrim, 2007. "Estimating demand elasticities of fixed telephony in Brazil," Economics Bulletin, AccessEcon, vol. 12(5), pages 1-9.
    2. Mongkolporn, Veerasak & Yin, Xiangkang, 2005. "How does the entry of new firms change demand? An empirical estimation for a Thai telecommunications company," Journal of Asian Economics, Elsevier, vol. 16(4), pages 688-703, August.
    3. Peter J. Danaher, 2002. "Optimal Pricing of New Subscription Services: Analysis of a Market Experiment," Marketing Science, INFORMS, vol. 21(2), pages 119-138, February.
    4. repec:ebl:ecbull:v:12:y:2007:i:5:p:1-9 is not listed on IDEAS
    5. Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
    6. Gary Madden & Grant Coble-Neal, 2005. "Australian Residential Telecommunications Consumption and Substitution Patterns," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(3), pages 325-347, October.
    7. Hans Ouwersloot & Piet Rietveld, 1997. "On the Distance Dependence of the Price Elasticity of Telecommunications Demand; Meta-analysis, and Alternative Theoretical Backgrounds," Tinbergen Institute Discussion Papers 97-080/3, Tinbergen Institute.

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    More about this item

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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