Physical Sciences and Mathematics Commons^™

An Empirical Analysis Of Mobile Voice Service And Sms: A Structural Model, Youngsoo Kim, William B. Vogt, Ramayya Krishnan, Rahul Telang

Research Collection School Of Computing and Information Systems

In addition to the wireless telephony boom, a similar exponential increasing trend in wireless data service - short message service (SMS) - is visible as technology advances. We develop a structural model to understand how mobile users behave, especially how they consume voice, and services. Specifically, we measure the own- and the cross-price elasticities of these services. The cross-price elasticity is of significant importance because marketing activities are critically influenced by whether the goods are substitutes or complements. The research context poses significant econometric challenges due to three-part tariff, sequential discrete plan choice and continuous quantity choices. Using detailed individual …