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DEMAND PULL AND SUPPLY PUSH IN PORTUGUESE CABLE TELEVISION NETWORKS: A VAR APPROACH

João Leitão ()

The IUP Journal of Applied Economics, 2006, vol. V, issue 2, pages 26-36

Abstract: In this article, a vector autoregressive model is applied to the two main Portuguese cable television operators in order to obtain a dynamic analysis of the interactivity established between the supply and demand of network services. The results reveal the existence of two driving forces. On the one hand, the supply push contributes to the enhancement of the basic demand, and on the other, the demand pull intensifies the introduction of new vertically integrated services. It is also detected that vertical integration of cable network services has a negative impact on the basic price.

Date: 2006
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