Competition in Turkish mobile telecommunications markets: Price elasticities and network substitution


KARAÇUKA M. , HAUCAP J., HEIMESHOFF U.

TELECOMMUNICATIONS POLICY, cilt.35, ss.202-210, 2011 (SCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 35 Konu: 2
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1016/j.telpol.2010.12.016
  • Dergi Adı: TELECOMMUNICATIONS POLICY
  • Sayfa Sayıları: ss.202-210

Özet

This paper estimates demand elasticities for Turkish mobile telecommunications markets. In contrast to most other studies, firm-level data is used to estimate dynamic panel data models including instrumental variable techniques. Both short- and long-run elasticities are calculated, yielding a long-run price elasticity of -0.72 for the post-paid market and of -0.33 for the pre-paid market. The short-run price elasticity is estimated to be -0.36 for the post-paid market and -0.20 for the pre-paid market In addition, there is evidence of fixed-to-mobile traffic substitution for consumers who use pre-paid cards. (C) 2010 Elsevier Ltd. All rights reserved.