The demand for bandwidth: second telephone lines and on-line services

A binomial probit model is used to examine households’ decisions to purchase a second telephone line and subscribe to an on-line service. It is found that households subscribing to an on-line service are nearly four times more likely to purchase an additional phone line as are those not subscribing...

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Veröffentlicht in:	Information economics and policy 2001-09, Vol.13 (3), p.301-309
Hauptverfasser:	Eisner, James, Waldon, Tracy
Format:	Artikel
Sprache:	eng
Schlagworte:	Binomial probit Decision analysis Economics Households Internet Price elasticity Residential telephone service Telecommunications Telephone U.S.A
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description	A binomial probit model is used to examine households’ decisions to purchase a second telephone line and subscribe to an on-line service. It is found that households subscribing to an on-line service are nearly four times more likely to purchase an additional phone line as are those not subscribing to an on-line service. The price elasticity of demand for second lines is found to be inelastic, though substantially more elastic than that for primary telephone lines.
doi_str_mv	10.1016/S0167-6245(01)00032-4
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source	RePEc; Elsevier ScienceDirect Journals
subjects	Binomial probit Decision analysis Economics Households Internet Price elasticity Residential telephone service Telecommunications Telephone U.S.A
title	The demand for bandwidth: second telephone lines and on-line services
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