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Estimation of Price Elasticities for an International Telephone Demand Model

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  • Bewley, Ronald
  • Fiebig, Denzil G

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.

Suggested Citation

  • Bewley, Ronald & Fiebig, Denzil G, 1988. "Estimation of Price Elasticities for an International Telephone Demand Model," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 393-409, June.
    • Handle: RePEc:bla:jindec:v:36:y:1988:i:4:p:393-409
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    1. repec:kap:iaecre:v:12:y:2006:i:1:p:131-137 is not listed on IDEAS
    2. Mayo, John W. & Ukhaneva, Olga, 2017. "International telecommunications demand," Information Economics and Policy, Elsevier, vol. 39(C), pages 26-35.
    3. Karikari, John A. & Gyimah-Brempong, Kwabena, 1999. "Demand for international telephone services between US and Africa," Information Economics and Policy, Elsevier, vol. 11(4), pages 407-435, December.
    4. Peter J. Danaher, 2002. "Optimal Pricing of New Subscription Services: Analysis of a Market Experiment," Marketing Science, INFORMS, vol. 21(2), pages 119-138, February.
    5. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
    6. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45862, University Library of Munich, Germany.
    7. James Alleman & Gary Madden & Scott Savage, 2000. "Trade imbalance in international message telephone services," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1311-1321.
    8. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45788, University Library of Munich, Germany.
    9. Munoz, Teresa Garin & Amaral, Teodosio Perez, 1996. "Demand for international telephone traffic in Spain: An econometric study using provincial panel data," Information Economics and Policy, Elsevier, vol. 8(4), pages 289-315, December.
    10. Gyimah-Brempong, Kwabena & Karikari, John Agyei, 2002. "Cost shifting in international telephone calls between US and African countries," Journal of Development Economics, Elsevier, vol. 68(2), pages 455-477, August.
    11. Eliasson, Gunnar & Fölster, Stefan & Lindberg, Thomas & Pousette, Tomas & Taymaz, Erol, 1990. "The Knowledge Based Information Economy," Working Paper Series 256, Research Institute of Industrial Economics.
    12. Christos Agiakloglou & Demetrius Yannelis, 2006. "Estimation of Price Elasticities for International Telecommunications Demand," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(1), pages 131-137, February.

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