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Australian Residential Telecommunications Consumption and Substitution Patterns

Author

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  • Gary Madden

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  • Grant Coble-Neal

Abstract

Better telecommunications pricing decisions are able to be made when more complete information concerning relationships among services is available. This study analyses residential fixed-line and mobile telephony, and Internet access and usage demands in an encompassing framework. The discrete-continuous framework allows for service interaction within and between service portfolios. Model estimation is based on the examination of data collected from a country-wide survey of Australian households. In particular, observed service portfolios (household consumption patterns at prevailing access prices and estimated average service usage prices), income and demographic characteristic data are collected. These data also allow the modelling to potentially identify market segments based on income and other household characteristics. Copyright Springer 2005

Suggested Citation

  • Gary Madden & Grant Coble-Neal, 2005. "Australian Residential Telecommunications Consumption and Substitution Patterns," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(3), pages 325-347, October.
  • Handle: RePEc:kap:revind:v:26:y:2005:i:3:p:325-347 DOI: 10.1007/s11151-004-6617-z
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    References listed on IDEAS

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    1. Madden, Gary & Simpson, Michel & Savage, Scott, 2002. "Broadband Delivered Entertainment Services: Forecasting Australian Subscription Intentions," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 422-432, December.
    2. Nakil Sung & Yong-Hun Lee, 2002. "Substitution between Mobile and Fixed Telephones in Korea," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(4), pages 367-374, June.
    3. Gatto, Joseph P. & Kelejian, Harry H. & Stephan, Scott W., 1988. "Stochastic generalizations of demand systems with an application to telecommunications," Information Economics and Policy, Elsevier, vol. 3(4), pages 283-309.
    4. Rodini, Mark & Ward, Michael R. & Woroch, Glenn A., 0. "Going mobile: substitutability between fixed and mobile access," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 457-476, June.
    5. Yannis Bakos & Erik Brynjolfsson, 1999. "Bundling Information Goods: Pricing, Profits, and Efficiency," Management Science, INFORMS, vol. 45(12), pages 1613-1630, December.
    6. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October.
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    Cited by:

    1. Andonova, Veneta & Diaz-Serrano, Luis, 2009. "Political institutions and telecommunications," Journal of Development Economics, Elsevier, vol. 89(1), pages 77-83, May.
    2. C. Deligiorgi & A. Vavoulas & Ch. Michalakelis & D. Varoutas & Th. Sphicopoulos, 2007. "On the construction of price index and the definition of factors affecting tariffs of ADSL connections across Europe," Netnomics, Springer, vol. 8(1), pages 171-183, October.

    More about this item

    Keywords

    service subscription and usage; substitution patterns; telecommunications pricing;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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