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Estimating demand for cellular phone services in Japan

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  • Iimi, Atsushi

Abstract

Since the 1990s, the telecommunications industry has changed dramatically with the wide diffusion of mobile telecommunications. In spite of this, the nature of the cellular phone market has not yet been explored sufficiently. This paper analyzes the demand for cellular phone services using data on the Japanese cellular phone market in the late 1990s. It finds that the market is highly product-differentiated and conventional network externalities are no longer decisive factors in choosing a mobile phone carrier. The evidence also shows that the demand for cellular phone services is quite price-elastic, with estimated elasticity from 1.30 to 2.43 in absolute value.

Suggested Citation

  • Iimi, Atsushi, 2005. "Estimating demand for cellular phone services in Japan," Telecommunications Policy, Elsevier, vol. 29(1), pages 3-23, February.
  • Handle: RePEc:eee:telpol:v:29:y:2005:i:1:p:3-23
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    Citations

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    Cited by:

    1. Mitsuru Sunada, 2008. "Network effects with quality change: an empirical analysis of the Japanese mobile telecommunications market, 1995-2001," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 657-674.
    2. Daniel Sperber & Alan Shiell & Ken Fyie, 2010. "The cost-effectiveness of a law banning the use of cellular phones by drivers," Health Economics, John Wiley & Sons, Ltd., vol. 19(10), pages 1212-1225.
    3. repec:kap:netnom:v:18:y:2017:i:1:d:10.1007_s11066-017-9114-x is not listed on IDEAS
    4. Dongook Choi & Yeonbae Kim, 2010. "Effects of Piracy and Digital Rights Management on the Online Music Market in Korea," TEMEP Discussion Papers 201072, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2010.
    5. Naoki Watanabe & Ryo Nakajima & Takanori Ida, 2010. "Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers’ Strategies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(4), pages 391-412, June.
    6. Ting Zhu & Hongju Liu & Pradeep Chintagunta, 2015. "Wireless Carriers’ Exclusive Handset Arrangements: an Empirical Look at the iPhone," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(2), pages 177-190, June.
    7. World Bank, 2009. "Macedonia - Moving to Faster and More Inclusive Growth A Country Economic Memorandum : Main Report and Annex," World Bank Other Operational Studies 3067, The World Bank.
    8. Garth Heutel & Erich Muehlegger, 2015. "Consumer Learning and Hybrid Vehicle Adoption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 125-161, September.
    9. Tseng, Fang-Mei & Wang, Shenq-Yuan & Hsieh, Chih-Hung & Guo, Aifang, 2014. "An integrated model for analyzing the development of the 4G telecommunications market in Taiwan," Telecommunications Policy, Elsevier, vol. 38(1), pages 14-31.
    10. Shinohara, Sobee & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2015. "Competition or smartphones? Factors promote mobile broadband adoption in OECD countries," 2015 Regional ITS Conference, Los Angeles 2015 146349, International Telecommunications Society (ITS).
    11. Akematsu, Yuji & Shinohara, Sobee & Tsuji, Masatsugu, 2012. "Empirical analysis of factors promoting the Japanese 3G mobile phone," Telecommunications Policy, Elsevier, vol. 36(3), pages 175-186.
    12. Chen-Ju Lin & Ci-Rong Li & Chih-Peng Chu, 2011. "The effects of applying a hybrid method with a macro–micro approach for market research in the telecommunication industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(4), pages 829-843, June.
    13. Shinohara, Sobee & Morikawa, Hiroyuki & Tsuji, Masatsugu, 2016. "How Smartphones Transformed Market and Competition of Mobile Broadband in OECD Member Countries," 27th European Regional ITS Conference, Cambridge (UK) 2016 148704, International Telecommunications Society (ITS).
    14. Junseok Hwang & Dongook Choi & Jongeun Oh & Yeonbae Kim, 2009. "Competition in the Korean Internet Portal Market: Network Effects, Profit, and Market Efficiency," TEMEP Discussion Papers 200925, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
    15. Akematsu, Yuji & Abu, Sheikh Taher & Tsuji, Masatsugu, 2010. "Empirical Study of Effect of Deregulation, Competition, and Contents on Mobile Phone Diffusion: Case of the Japanese 3G Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 1, International Telecommunications Society (ITS).

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