A forward-looking analysis of residential telephone access demand in Korea

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This paper analyzes the price elasticity for residential access demand in Korea using survey data of 1998. We apply an asymmetric GEV model to this data and derive a formula for forward-looking price elasticities of the penetration rate. We categorize the respondents into two groups, single-line households and multi-line households, and estimate the price elasticities for each group. Estimation outcome shows that single-line households are less sensitive to price changes than multi-line households with respect to installation charge and rental charge. In view of the relatively low price elasticities of single-line households, an increase in rental charge is not expected to result in large-scale drop-offs of primary lines.
Publisher
International Telecommunications Society
Issue Date
1999-09
Language
ENG
Citation

International Telecommunications Society

URI
http://hdl.handle.net/10203/5297
Appears in Collection
KGSM-Conference Papers(학술회의논문)

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