Demand Elasticities for Mobile Telecommunications in Austria

Ralf Dewenter and Justus Haucap

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2008, vol. 228, issue 1, 49-63

Abstract: This paper analyses price elasticities in the Austrian market for mobile telecommunications services using data on firm specific tariffs in the period between January 1998 and March 2002. As a novelty compared to existing studies dynamic panel data regressions are used to estimate short-run and long-run demand elasticities for business customers and for private consumers with both postpaid contracts and prepaid cards.We find that business customers have a higher elasticity of demand than private consumers, where postpaid customers tend to have a higher demand elasticity than prepaid customers. Also demand is as expected more elastic in the long run. In addition, the paper also provides estimates for firm-specific demand elasticities which range from -0.47 to -1.1.

Keywords: Mobile telephony; price elasticities; unbalanced panel data; dynamic panel data analysis (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (18)

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Working Paper: Demand Elasticities for Mobile Telecommunications in Austria (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:228:y:2008:i:1:p:49-63

DOI: 10.1515/jbnst-2008-0105

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