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Competition in Turkish mobile telecommunications markets: Price elasticities and network substitution

Mehmet Karacuka (), Justus Haucap and Ulrich Heimeshoff ()

Telecommunications Policy, 2011, vol. 35, issue 2, 202-210

Abstract: This paper estimates demand elasticities for Turkish mobile telecommunications markets. In contrast to most other studies, firm-level data is used to estimate dynamic panel data models including instrumental variable techniques. Both short- and long-run elasticities are calculated, yielding a long-run price elasticity of -0.72 for the post-paid market and of -0.33 for the pre-paid market. The short-run price elasticity is estimated to be -0.36 for the post-paid market and -0.20 for the pre-paid market. In addition, there is evidence of fixed-to-mobile traffic substitution for consumers who use pre-paid cards.

Keywords: Mobile; telecommunications; Price; elasticity; Fixed-mobile; substitution; Dynamic; panel; data; analysis (search for similar items in EconPapers)
Date: 2011
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Working Paper: Competition in the Turkish mobile telecommunications market: Price elasticities and network substitution (2010) Downloads
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