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Residential broadband subscription demand: an econometric analysis of Australian choice experiment data

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  • Gary Madden
  • Michael Simpson

Abstract

The recent roll-out of fibre-optic cable suggests that the willingness of households in passed communities to subscribe to networked services is an important issue. This paper studies the determination of the demand for network subscription. Through a discrete choice model the effect of installation and rental price on the likelihood of subscription is analysed. The logit regression is based on choice experiment (stated preference) subscription data obtained from a national survey of households. Limitations of this preliminary work and suggestions for future research are discussed.

Suggested Citation

  • Gary Madden & Michael Simpson, 1997. "Residential broadband subscription demand: an econometric analysis of Australian choice experiment data," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1073-1078.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1073-1078
    DOI: 10.1080/000368497326462
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    1. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring.
    2. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October.
    3. Bodnar & Peter Dilworth & Salvatore Iacono, Judith, 1988. "Cross-sectional analysis of residential telephone subscription in Canada," Information Economics and Policy, Elsevier, vol. 3(4), pages 355-378.
    4. Madden, Gary, 1995. "Experimentation in Economics: An Overview of the Stated-Preference Experimental Design Method," Australian Economic Papers, Wiley Blackwell, vol. 34(64), pages 120-135, June.
    5. Park, Rolla Edward & Mitchell, Bridger M. & Wetzel, Bruce M. & Alleman, James H., 1983. "Charging for local telephone calls : How household characteristics affect the distribution of calls in the GTE Illinois experiment," Journal of Econometrics, Elsevier, vol. 22(3), pages 339-364, August.
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    More about this item

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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