Antitrust & Competition Policy Blog

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

A Member of the Law Professor Blogs Network

Monday, February 18, 2013

An Empirical Analysis of the Demand for Fixed and Mobile Telecommunications Services

Posted by D. Daniel Sokol

Yongkyu Kim, Hanyang University - Department of Economics, Jin-Soo Yoo, Sookmyung Women's University - Department of Economics, Seonghoon Jeon, Sogang University - Department of Economics, and Yoon-Jae Whang, Seoul National University - School of Economics offer An Empirical Analysis of the Demand for Fixed and Mobile Telecommunications Services.

ABSTRACT: In this paper, we estimate the own- and cross-price elasticities and income elasticity of various fixed and mobile telephone services using monthly time series data. We estimate expenditure share of various telecommunications services such as local, toll, LM (Land to Mobile), Mobile Voice and Short Message Services. We employ AIDS (Almost Ideal Demand System) as the estimation model and employ Triangular Error Correction Model in the estimation to consider the cointegrated relationship between variables. We show that the own-price elasticity of the demand for local call is -1.06 and the own-price elasticity of the demand for mobile is -0.85. This result is consistent with those of previous studies.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/02/an-empirical-analysis-of-the-demand-for-fixed-and-mobile-telecommunications-services.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef017c35adf5c7970b

Listed below are links to weblogs that reference An Empirical Analysis of the Demand for Fixed and Mobile Telecommunications Services:

Comments

Post a comment