TY - JOUR
T1 - Estimating the demand for ADSL and ISDN services in Greece
AU - Yannelis, Demetrius
AU - Christopoulos, Apostolos G.
AU - Kalantzis, Fotis G.
PY - 2009/11
Y1 - 2009/11
N2 - The aim of this paper is to investigate the demand for broadband services in Greece and to estimate the price elasticity of the demand for ADSL and ISDN services as well as the cross-price elasticity between the two services. The empirical analysis uses the 384 kbps connections since for the period examined, over 85% of the total ADSL customers in Greece are connected at this bandwidth. The empirical analysis is based on an ad-hoc specification of the demand equation, with no reference to the utility maximization problem of the representative consumer. The results of the analysis show that both demands are inelastic. In addition, cross-price elasticity for ADSL is negative, indicating that ISDN is a complement to ADSL, whereas the demand for ISDN is almost neutral to ADSL.
AB - The aim of this paper is to investigate the demand for broadband services in Greece and to estimate the price elasticity of the demand for ADSL and ISDN services as well as the cross-price elasticity between the two services. The empirical analysis uses the 384 kbps connections since for the period examined, over 85% of the total ADSL customers in Greece are connected at this bandwidth. The empirical analysis is based on an ad-hoc specification of the demand equation, with no reference to the utility maximization problem of the representative consumer. The results of the analysis show that both demands are inelastic. In addition, cross-price elasticity for ADSL is negative, indicating that ISDN is a complement to ADSL, whereas the demand for ISDN is almost neutral to ADSL.
KW - ADSL
KW - Broadband
KW - Cross-price elasticity
KW - ISDN
KW - Own-price elasticity
UR - http://www.scopus.com/inward/record.url?scp=70350565962&partnerID=8YFLogxK
U2 - 10.1016/j.telpol.2009.07.006
DO - 10.1016/j.telpol.2009.07.006
M3 - Article
AN - SCOPUS:70350565962
SN - 0308-5961
VL - 33
SP - 621
EP - 627
JO - Telecommunications Policy
JF - Telecommunications Policy
IS - 10-11
ER -