Published on July 23, 2021 – Updated on July 26, 2021

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Prices and the demand for mobile voice communication

Demand for mobile phone communication is more sensitive to price variations in developed countries. Although this may seem counter-intuitive, the evolution of the telecommunications sector, particularly in developing countries, explains this result. The sector's characteristics in developed countries also come into play.

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Reference
Hausman, J. A., & Ros, A. J. (2013), "An econometric assessment of telecommunications prices and consumer surplus in Mexico using panel data", Journal of Regulatory Economics, 43(3), 284-304.