NDLI: Telephony choices and the evolution of cell phones

Content Provider	Springer Nature Link
Author	Thacker, Michael J. Wilson, Wesley W.
Copyright Year	2015
Abstract	Since cell phones were introduced commercially in 1983, virtually all consumers have adopted cell phones. In this paper, we examine the effect of this new product on telephony demand and its evolution in the market using the Consumer Expenditure Survey from 1994 to 2012. This represents a period much longer than previous studies and over which most cell phone adoptions took place. We develop and estimate a model of household choice of telephony options using a mixed logit as a function of consumer characteristics, unobserved alternative-specific attributes, and prices over time. Unlike previous research, our focus is on the evolution of demand and choices made by households. To illustrate the evolution, we construct market segments and track adoptions over time by market segment, allowing for an assessment of whether cell phones are substitutes or complements for landlines. The evidence suggests that the move to cellular telephone services is driven by young households and by households with larger families. We then develop and apply a decomposition of substitutability and find significant evidence that substitutability differs through time and by market segment.
Ending Page	25
Page Count	25
Starting Page	1
File Format	PDF
ISSN	0922680X
e-ISSN	15730468
Journal	Journal of Regulatory Economics
Issue Number	1
Volume Number	48
Language	English
Publisher	Springer US
Publisher Date	2015-03-27
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Landline Cellular Choice Telephone Microeconomics Consumer adoption Evolution Public Finance & Economics Industrial Organization
Content Type	Text
Resource Type	Article
Subject	Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
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