The Demand for International Message Telephone Services: A Two-Stage Budgeting Model

The Demand for International Message Telephone Services: A Two-Stage Budgeting Model This paper examines demand for international telephone services. Using panel data covering 57 routes over 6 years, a model featuring a two-stage budgeting process and product differentiation is implemented for empirical estimation. A range of economic, social, cultural and technological variables are included in the aggregate-level model to study overall demand. The unique and rich data offers an opportunity to examine the impact of new technology innovations such as Internet on traditional telephone services. The company-level model incorporates product differentiation and uses the Almost Ideal Demand System to simultaneously estimate demands for and competition between carriers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The Demand for International Message Telephone Services: A Two-Stage Budgeting Model

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2005 by Springer
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-005-1752-8
Publisher site
See Article on Publisher Site

Abstract

This paper examines demand for international telephone services. Using panel data covering 57 routes over 6 years, a model featuring a two-stage budgeting process and product differentiation is implemented for empirical estimation. A range of economic, social, cultural and technological variables are included in the aggregate-level model to study overall demand. The unique and rich data offers an opportunity to examine the impact of new technology innovations such as Internet on traditional telephone services. The company-level model incorporates product differentiation and uses the Almost Ideal Demand System to simultaneously estimate demands for and competition between carriers.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Aug 8, 2005

References

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