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Title:Demand elasticities for mobile telecommunications in Austria PDF Logo
Authors:Dewenter, Ralf
Haucap, Justus
Issue Date:2007
Series/Report no.:Ruhr economic papers 17
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. 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 generally 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.
Subjects:Mobile telephony
price elasticities
unbalanced panel data
dynamic panel data analysis
JEL:C23
L13
L96
ISBN:978-3-86788-011-4
Document Type:Working Paper
Appears in Collections:Ruhr Economic Papers, RWI
Publikationen von Forscherinnen und Forschern des RWI

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