IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v13y2004i3p251-277.html
   My bibliography  Save this article

The diffusion of mobile telephony in Italy and the UK: an empirical investigation

Author

Listed:
  • Silvia Massini

Abstract

Since its appearance mobile telephony has shown a remarkably fast diffusion pattern in most advanced countries. This paper investigates technological and economic factors that have influenced the diffusion process of cellular phones, in particular the diffusion speed and the upper limit. The epidemic model widely used in diffusion studies is summarised and discussed highlighting the evolutionary disequilibrium nature of diffusion processes. Moreover, the econometric specification of some of the models distinguishes between long-run relationships and short-run adjustments to a continuously evolving pattern. We find that the new digital technology, which coincides with increased competition in both Italy and the UK, has made the process faster and increased the saturation level in Italy, but not in the UK; in Italy only the decreasing price of the handset has affected the diffusion process, whereas we find that, in addition to that, decreasing tariffs and increasing consumption expenditures have been significant in shaping the diffusion process of mobile telephony in the UK.

Suggested Citation

  • Silvia Massini, 2004. "The diffusion of mobile telephony in Italy and the UK: an empirical investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 251-277.
  • Handle: RePEc:taf:ecinnt:v:13:y:2004:i:3:p:251-277
    DOI: 10.1080/10438590410001628396
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590410001628396
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stoneman, Paul & Kwon, Myung-Joong, 1994. "The Diffusion of Multiple Process Technologies," Economic Journal, Royal Economic Society, vol. 104(423), pages 420-431, March.
    2. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    3. Arcangeli, Fabio & Dosi, Giovanni & Moggi, Massimo, 1991. "Patterns of diffusion of electronics technologies: An international comparison with special reference to the Italian case," Research Policy, Elsevier, vol. 20(6), pages 515-529, December.
    4. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    5. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
    6. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
    7. Drew Fudenberg & Jean Tirole, 1985. "Preemption and Rent Equalization in the Adoption of New Technology," Review of Economic Studies, Oxford University Press, vol. 52(3), pages 383-401.
    8. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 13-48, March.
    9. Stoneman, Paul & Battisti, Giuliana, 1998. "Fiscal incentives to consumer innovation: the use of unleaded petrol in Europe," Research Policy, Elsevier, vol. 27(2), pages 187-213, June.
    10. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    11. Foray, Dominique & Grubler, Arnulf, 1990. "Morphological analysis, diffusion and lockout of technologies: Ferrous casting in France and the FRG," Research Policy, Elsevier, vol. 19(6), pages 535-550, December.
    12. Dickey, David A & Pantula, Sastry G, 2002. "Determining the Order of Differencing in Autoregressive Processes," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 18-24, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dewenter, Ralf & Kruse, Jörn, 2011. "Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation," Information Economics and Policy, Elsevier, vol. 23(1), pages 107-117, March.
    2. Theologos Dergiades & Apostolos Dasilas, 2010. "Modelling and forecasting mobile telecommunication services: the case of Greece," Applied Economics Letters, Taylor & Francis Journals, vol. 17(18), pages 1823-1828.
    3. Gamboa, Luis Fernando & Otero, Jesús, 0. "An estimation of the pattern of diffusion of mobile phones: The case of Colombia," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 611-620, November.
    4. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    5. Riikonen, Antti & Smura, Timo & Kivi, Antero & Töyli, Juuso, 2013. "Diffusion of mobile handset features: Analysis of turning points and stages," Telecommunications Policy, Elsevier, vol. 37(6), pages 563-572.
    6. James G. Mulligan & Nilotpal Das, 2006. "Item Pricing Laws, Supplier Behavior, and the Diffusion of Time-Saving Technology Innovations," Working Papers 06-11, University of Delaware, Department of Economics.
    7. James G. Mulligan & Nilotpal Das, 2004. "Vintage Effects and the Diffusion of Time-Saving Technological Innovations: The Adoption of Optical Scanners by U.S. Supermarkets."," Working Papers 04-06, University of Delaware, Department of Economics.
    8. Meade, Nigel & Islam, Towhidul, 2015. "Forecasting in telecommunications and ICT—A review," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1105-1126.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:13:y:2004:i:3:p:251-277. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.