Estimation of Price Elasticities for an International Telephone Demand Model

Ronald Bewley and Denzil Fiebig

Journal of Industrial Economics, 1988, vol. 36, issue 4, 393-409

Abstract: The demand for international telephone calls in Australia is comprised of three s ervices with three distinct prices. In order to estimate elasticities for both tariffs and surcharges, an econometric model is developed t hat has two submodels, each of which consists of an aggregate equatio n and an allocation system. One model determines how the total number of telephone calls is allocated among the three services, while the second allocates the total number of minutes called between directly- dialed and operator-connected services. The model is estimated using aggregate data for telephone traffic emanating from Australia. Copyright 1988 by Blackwell Publishing Ltd.

Date: 1988
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