Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Monday, July 2, 2012

How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 European countries

Posted by D. Daniel Sokol

Anne-Kathrin Barth, Duesseldorf Institute for Competition Economics and Ulrich Heimeshoff, Duesseldorf Institute for Competition Economics provide analysis on How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 European countries.

ABSTRACT: This paper investigates the degree of fixed-mobile call substitution (FMCS). We use quarterly data from 2004 to mid 2010 on 16 mainly Western European countries. By applying dynamic panel data techniques, we are able to estimate short-and long-run elasticities. The own-price and cross-price elasticities found give strong empirical evidence for substitutional effects towards mobile services. In particular, the estimated cross-price elasticities of the mobile price on the fixed line call demand are relatively large compared to other studies.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/07/how-large-is-the-magnitude-of-fixed-mobile-call-substitution-empirical-evidence-from-16-european-cou.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef016766ce6aff970b

Listed below are links to weblogs that reference How large is the magnitude of fixed-mobile call substitution? Empirical evidence from 16 European countries :

Comments

The own-price and cross-price elasticities discovered give powerful scientific proof for substitutional results towards cellular solutions. In particular, the approximated cross-price elasticities of the cellular cost on the set line contact need are relatively large in comparison to other research.

Posted by: c | Jul 2, 2012 4:10:29 AM

Post a comment