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The consumer loss of the minimum duration for mobile telephone calls

Author

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  • Grzybowski, Lukasz
  • Pereira, Pedro

Abstract

This article estimates price elasticities of demand for the duration of mobile telephone calls for Portugal, as well as the monetary loss per consumer of the existence of a minimum duration of calls. The demand for the duration of calls is estimated using a Tobit model for panel data with individual random effects. The elasticity of demand is found to be small and to vary across firms. At current prices, the average duration of calls ranges between 101 and 109Â s, while the estimated average length of calls without minimum duration ranges between 63 and 66Â s. Hence, the existence of a minimum duration for calls results in a monetary loss of 35-40% of the average invoice.

Suggested Citation

  • Grzybowski, Lukasz & Pereira, Pedro, 0. "The consumer loss of the minimum duration for mobile telephone calls," Telecommunications Policy, Elsevier, vol. 33(3-4), pages 200-206, April.
    • Handle: RePEc:eee:telpol:v:33:y::i:3-4:p:200-206
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    Cited by:

    1. Lukasz Grzybowski & Pedro Pereira, 2007. "Merger Simulation in Mobile Telephony in Portugal," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 31(3), pages 205-220, November.
    2. Lukasz Grzybowski & Pedro Pereira, 2011. "Subscription Choices and Switching Costs in Mobile Telephony," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(1), pages 23-42, January.

    More about this item

    Keywords

    Mobile telephony Price elasticities Call duration Tobit mode;

    JEL classification:

    • 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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