 The effect of user interaction on the demand for mobile text messages: Evidence from cross-country dataBruno Basalisco Information Economics and Policy, 2012, vol. 24, issue 2, 132-144 Abstract: This work presents an empirical analysis of the impact of user interaction on the demand for telecommunications. Specifically, we measure mobile telephony demand estimating a point-to-point model of the text messaging traffic exchanged cross-network, identifying the impact of incoming traffic as well as network size. The analysis relies on a monthly dataset spanning 15 countries for the period 2002–2007. The econometric estimates of price elasticities indicate that incoming traffic is a key driver of SMS demand, as previously established for fixed telephony. A further novel contribution is the estimation of the demand impact of network size, a confounding factor for the effect of incoming traffic. The results hold implications for theories of network competition, optimal pricing by telecommunications operators and regulation. Keywords: Mobile SMS; Price elasticity; Network effect; Point-to-point demand; Incoming traffic; Information exchange (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:24:y:2012:i:2:p:132-144 DOI: 10.1016/j.infoecopol.2011.10.001 Access Statistics for this article Information Economics and Policy is currently edited by D. Waterman More articles in Information Economics and Policy from Elsevier |
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