Demand for Thai Mobile Telecommunications and Market Power Measurement

Thunwar Phansatarn, Chalita Srinuan and Pratompong Srinuan
Additional contact information
Chalita Srinuan: Business School, King Mongkut's Institute of Technology Ladkrabang, Thailand
Pratompong Srinuan: Office of the National Broadcasting and Telecommunications Commission, Thailand

Asian Journal of Applied Economics/ Applied Economics Journal, 2022, vol. 29, issue 1, 56-77

Abstract: This research studies how to estimate the demand for goods in the market. This demandrelated information will be useful for analyzing competition among operators. The estimation method can use market-level data classified by operator. In addition, demand models using this estimation method must consider the problem of price endogeneity and therefore use the Market Share Inversion method. This method will be applied to Thai mobile telecommunications. From the estimation, it is found that the estimates are consistent with the assumptions of the model. The results of the estimation illustrate that the own-price elasticities of demand are greater than one (absolute value), while the cross-price elasticities of demand are varied. The demand-related information is used to estimate the marginal cost, which demonstrates a downward trend, while the market has larger number of users. This implies economies of scale. When calculating the Lerner Index as an alternative measure of market power, an increasing trend was found, indicating a greater dominance of the market of the operator, with very little change in market structure and tariff, especially for the last ten years. The results of the study can be used for studies of market dominance in Thai mobile telecommunications along with the market share. Regulators can propose various actions to reduce the market power of operators, which is beneficial for the market.

Keywords: mobile telecommunication; demand estimation; market power; Thailand (search for similar items in EconPapers)
JEL-codes: C51 L13 L96 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://so01.tci-thaijo.org/index.php/AEJ/article/view/248829/168464 Full text (application/pdf)
Asian Journal of Applied Economics/ Applied Economics Journal

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:apecjn:0066

Access Statistics for this article

Asian Journal of Applied Economics/ Applied Economics Journal is currently edited by Waleerat Suphannachart

More articles in Asian Journal of Applied Economics/ Applied Economics Journal from Kasetsart University, Faculty of Economics, Center for Applied Economic Research Center for Applied Economics Research, Faculty of Economics, Kasetsart University, Bangkok, 10900, Thailand. Contact information at EDIRC.
Bibliographic data for series maintained by Arannee Tongjankaew ().