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Discrete Choice Analysis of Demand for Broadband in Japan

Author

Listed:
  • Takanori Ida
  • Toshifumi Kuroda

Abstract

The remarkable development of Japan’s broadband (BB) market has attracted attention worldwide. This paper is one of the first to analyze Japan’s BB demand (including FTTH) using a discrete choice model. Our main conclusions are first, there is a distinction between narrowband (NB) and BB services based on a nested choice structure. Second, considering own-price elasticities of access demand, ADSL is inelastic, but FTTH and CATV are elastic. Third, in ADSL submarkets, low-speed and high-speed ADSL are becoming more elastic. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Takanori Ida & Toshifumi Kuroda, 2006. "Discrete Choice Analysis of Demand for Broadband in Japan," Journal of Regulatory Economics, Springer, vol. 29(1), pages 5-22, January.
    • Handle: RePEc:kap:regeco:v:29:y:2006:i:1:p:5-22
    DOI: 10.1007/s11149-005-5124-y
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    References listed on IDEAS

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    1. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457, Elsevier.
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    More about this item

    Keywords

    broadband; discrete choice; nested logit; price elasticity; L52; L86; L96;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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