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Market share model of rural telephone service

Author

Listed:
  • Church, J. G.
  • Gordon, I. M.

Abstract

Premium telephone rates, population density, and the grade of telephone service that rural customers choose all vary with distance from the nearest urban center. A survey of 3800 rural subscribers determined their choice of service for alternative prices given the addition of a new service. A two-stage probit model was used to estimate the new market shares for a wide range of conditions. The model was applied, as part of a large-scale revenue/cost simulation system, to the current and forecasted distribution of customers to evaluate the economic impact of numerous pricing and provisioning possibilities.

Suggested Citation

  • Church, J. G. & Gordon, I. M., 1978. "Market share model of rural telephone service," Omega, Elsevier, vol. 6(1), pages 59-64.
  • Handle: RePEc:eee:jomega:v:6:y:1978:i:1:p:59-64
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