The Complementarity between Calls and Messages in Mobile Telephony

Lukasz Grzybowski and Pedro Pereira

No 27, Working Papers from Portuguese Competition Authority

Abstract: This article estimates the price elasticities of the demand for mobile telephone calls and the demand for messages for Portugal. We use a panel of individual level data. In order to account for the unobserved individual heterogeneity and for the data censoring, we estimate a Tobit model for panel data with individual random effects. The demand for calls and the demand for messages are inelastic. Calls and messages are complements.

Keywords: Mobile Telephony; Price Elasticities; SMS; Complementarity (search for similar items in EconPapers)
JEL-codes: L13 L43 L93 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: Written
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http://www.concorrencia.pt/download/WP27_CallsMessages.pdf First version, 2007 (application/pdf)

Related works:
Journal Article: The complementarity between calls and messages in mobile telephony (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:pca:wpaper:27

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