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Dynamic Aspects of Public Goods: A Further Analysis of the Telephone System

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  • Burckhard von Rabenau
  • Konrad Stahl

Abstract

This paper reconsiders a dynamic model of the telephone system developed by Artle and Averous, which for the first time introduces public goods in a dynamic framework. With a more restrictive set of assumptions, their proposition showing self-sustaining growth in the demand for telephones is restated and discussed in detail. Comparative statics of the model are discussed to illuminate further properties which are due to the public good characteristics of the telephone system. Alternative interpretations of the dynamics of the model are given. Finally, a paradigm of urban growth is given to suggest applications of this type of model to other areas of economic analysis.

Suggested Citation

  • Burckhard von Rabenau & Konrad Stahl, 1974. "Dynamic Aspects of Public Goods: A Further Analysis of the Telephone System," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 651-669, Autumn.
    • Handle: RePEc:rje:bellje:v:5:y:1974:i:autumn:p:651-669
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    Cited by:

    1. Garin Munoz, Teresa, 1996. "Demand for national telephone traffic in Spain from 1985-1989: An econometric study using provincial panel data," Information Economics and Policy, Elsevier, vol. 8(1), pages 51-73, March.
    2. Denis Phan, 2006. "Discrete Choices under Social Influence:Generic Properties," Post-Print halshs-00105857, HAL.
    3. Mirta B. Gordon & Jean-Pierre Nadal & Denis Phan & Viktoriya Semeshenko, 2012. "Entanglement between Demand and Supply in Markets with Bandwagon Goods," Papers 1209.1321, arXiv.org, revised Dec 2012.
    4. Viktoriya Semeshenko & Alexis Garapin & Bernard Ruffieux & Mirta Gordon, 2010. "Information-driven coordination: experimental results with heterogeneous individuals," Theory and Decision, Springer, vol. 69(1), pages 119-142, July.
    5. Amaral, Teodosio Perez & Gonzalez, Francisco Alvarez & Jimenez, Bernardo Moreno, 1995. "Business telephone traffic demand in Spain: 1980-1991, an econometric approach," Information Economics and Policy, Elsevier, vol. 7(2), pages 115-134, June.
    6. Todd Sandler, 2013. "Buchanan clubs," Constitutional Political Economy, Springer, vol. 24(4), pages 265-284, December.
    7. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    8. Winston Chang & Lawrence Southwick, 1987. "On the pricing and benefit structure of a private club or public utility," Public Choice, Springer, vol. 55(3), pages 227-244, October.
    9. López, Rafael & Valarezo, Ángel & Pérez-Amaral, Teodosio, 2023. "Unleashing the potential of online learning in Spain: An econometric analysis," Telecommunications Policy, Elsevier, vol. 47(6).
    10. Mesak, Hani I. & Bari, Abdullahel & Babin, Barry J. & Birou, Laura M. & Jurkus, Anthony, 2011. "Optimum advertising policy over time for subscriber service innovations in the presence of service cost learning and customers' disadoption," European Journal of Operational Research, Elsevier, vol. 211(3), pages 642-649, June.
    11. Silva, Simone & Badasyan, Narine & Busby, Michael, 2018. "Diversity and digital divide: Using the National Broadband Map to identify the non-adopters of broadband," Telecommunications Policy, Elsevier, vol. 42(5), pages 361-373.
    12. Teodosio Pérez Amaral, 1993. "Un estudio econométrico de la demanda de tráfico telefónico particular en España, 1980-1990," Investigaciones Economicas, Fundación SEPI, vol. 17(2), pages 363-378, May.
    13. López, Rafael & Valarezo, Ángel & Pérez-Amaral, Teodosio, 2021. "Online education adoption in Spain 2008-2019. Drivers and impediments," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238038, International Telecommunications Society (ITS).
    14. Rodriguez-Andres, Antonio & Perez-Amaral, Teodosio, 1998. "Demand for telephone lines and universal service in Spain," Information Economics and Policy, Elsevier, vol. 10(4), pages 501-514, December.
    15. Munoz, Teresa Garin & Amaral, Teodosio Perez, 1996. "Demand for international telephone traffic in Spain: An econometric study using provincial panel data," Information Economics and Policy, Elsevier, vol. 8(4), pages 289-315, December.
    16. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa & Herguera, Iñigo, 2020. "E-commerce by individuals in Spain using panel data 2008–2016," Telecommunications Policy, Elsevier, vol. 44(4).
    17. Holler, Manfred J. & Thisse, Jacques-Francois, 1996. "The economics of standardization: Introduction and overview," European Journal of Political Economy, Elsevier, vol. 12(2), pages 177-182, September.
    18. Barman, Hemanta & Dutta, Mrinal Kanti & Nath, Hiranya K., 2018. "The telecommunications divide among Indian states," Telecommunications Policy, Elsevier, vol. 42(7), pages 530-551.
    19. Pérez-Amaral, Teodosio & Valarezo, Angel & López, Rafael & Garín-Muñoz, Teresa & Herguera, Iñigo, 2019. "E-commerce and digital divide in Spain using individual panel data 2008-2016," 30th European Regional ITS Conference, Helsinki 2019 205206, International Telecommunications Society (ITS).

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