Demand Elasticities for Mobile Telecommunications in Austria
31 Pages Posted: 11 Sep 2007
Date Written: June 2007
Abstract
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. 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 generally 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.
Keywords: Mobile telephony, price elasticities, unbalanced panel data, dynamic panel data analysis
JEL Classification: C23, L13, L96
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Pascal Courty and Li Hao
-
Estimating Demand for Local Telephone Service with Asymmetric Information and Optional Calling Plans
-
Going Mobile: Substitutability between Fixed and Mobile Access
By Mark Rodini, Michael R. Ward, ...
-
Efficiency Effects on the U.S. Economy from Wireless Taxation
-
Advance-Purchase Discounts as a Price Discrimination Device
By Volker Nocke and Martin Peitz