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Demand Elasticities for Mobile Telecommunications in Austria

  • Ralf Dewenter

    ()

    (Ruhr-University Bochum, Department of Economics)

  • Justus Haucap

    ()

    (University of Erlangen-Nuremberg, Department of Economics)

This paper analyses price elasticities in the Austrian market for mobile telecommunications services using data on firm specific tariffs in the period between January 1998 and March 2002. As a novelty compared to existing studies dynamic panel data regressions are used to estimate short-run and long-run demand elasticities for business customers and for private consumers with both postpaid contracts and prepaid cards. We find that business customers have a higher elasticity of demand than private consumers, where postpaid customers tend to have a higher demand elasticity than prepaid customers. Also demand is as expected more elastic in the long run. In addition, the paper also provides estimates for firm-specific demand elasticities which range from -0.47 to -1.1.

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Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 228 (2008)
Issue (Month): 1 (February)
Pages: 49-63

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Handle: RePEc:jns:jbstat:v:228:y:2008:i:1:p:49-63
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  8. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  9. Baltagi, Badi H. & Chang, Young-Jae, 2000. "Simultaneous Equations With Incomplete Panels," Econometric Theory, Cambridge University Press, vol. 16(02), pages 269-279, April.
  10. Baltagi, Badi H. & Chang, Young-Jae, 1994. "Incomplete panels : A comparative study of alternative estimators for the unbalanced one-way error component regression model," Journal of Econometrics, Elsevier, vol. 62(2), pages 67-89, June.
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  14. Jerry HAUSMAN & Gregory LEONARD & J. Douglas ZONA, 1994. "Competitive Analysis with Differentiated Products," Annales d'Economie et de Statistique, ENSAE, issue 34, pages 159-180.
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  19. repec:ebl:ecbull:v:12:y:2007:i:5:p:1-9 is not listed on IDEAS
  20. Das, Pinaki & Srinivasan, P. V., 1999. "Demand for telephone usage in India," Information Economics and Policy, Elsevier, vol. 11(2), pages 177-194, July.
  21. Lukasz Grzybowski, 2008. "The Competitiveness of Mobile Telephony across the European Union," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(1), pages 99-115.
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