Telecommunications Demand in Theory and Practice
Telecommunications Demand in Theory and Practice, which builds upon the author's seminal 1980 book, Telecommunications Demand: A Review and Critique, provides comprehensive analyses of the determinants and structure of telecommunications demands in the Un
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TELECOMMUNICATIONS DEMAND IN THEORY AND PRACTICE by LESTERD. TAYLOR Department of Economics, University ofArizona, Tucson, Ariz., U.S.A .
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SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
Library of Congress Cataloging-in-Publication Data Taylor, Lester D. Telecommunications demand in theory and practice / by Lester D. Taylor. -- [Rev. ed.l p. cm. Rev. ed. of: Telecommunications demand. c1980. "March 1993." Inc 1udes bib 1 i ograph i ca 1 references and index. ISBN 978-0-7923-2675-5
ISBN 978-94-011-0892-8 (eBook)
DOI 10.1007/978-94-011-0892-8
1. Telephone--United States. 2. Telephone--Mathematical models. I. Taylor, Lester D. Telecommunications demand. II. Title. HE8815.T395 1994 384.S'0973--dc20 93-14522
ISBN 978-0-7923-2675-5
Printed on acidjree paper
All Rights Reserved © 1994 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in 1994 Softcover reprint of the hardcover 1st edition 1994
No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner.
To EDL and PBL, whose efforts and support made the 1980 book possible
TABLE OF CONTENTS
LIST OF FIGURES
xi
LIST OF TABLES
xiii
PREFACE
xvii
CHAPTER 1 / INTRODUCTION AND OVERVIEW I. II. III. IV.
Background Recent Methodological Developments Conferences and Special Volumes Plan of Book
CHAPTER 2 / THE THEORY OF TELEPHONE DEMAND I: BASIC RESULTS I. II. III. IV.
Some Basic Considerations Recent Contributions to the Theory of Telephone Demand Consumption Externalities and Communities of Interest A Framework for Analyzing Telephone Demand V. Relationships Between Price and Income Elasticities for Access and Usage VI. Option Demand
1 1 3 6 7
8
8 10 23 24 31 33
CHAPTER 3 / THE THEORY OF TELEPHONE DEMAND II: EXTENSIONS OF BASIC RESULTS
36
I. The Duration and Distance Dimensions of Telephone Demand II. Time-of-Day Pricing III. Operator-Handled Versus Direct-Dialed Calls IV. Some Further Dynamics V. The Usage of Price Deflated Revenues VI. Firm vs Market Elasticities VII. Logistic Approaches to Forecasting VIII. Concluding Comments
36 48 50 51 54 56 61 63
CHAPTER 4 / BUSINESS TELECOMMUNICATIONS DEMAND
65
vii
viii
Table of Contents
I. II. III. IV.
Some Basic Considerations A General Model of Business Demand Some Specific Models of Business Demand Business Demand From the Point of View of the Local Exchange Company V. Wrap-up and Summary
CHAPTER 5 / RECENT STUDIES OF RESIDENTIAL ACCESS DEMAND I. The 1983 Perl Study II. Southwestern Bell's Residential Access Demand Model: Taylor and Kridel (1990) III. Bell Canada's Residential Access Demand Model IV. Train, McFadden, and Ben-Akiva (1987) V. Evaluation CHAPTER 6 / RECENT STUDIES OF TOLL DEMAND I. II. III. IV. V.
Toll Demand in Ontario and Quebec Point-to-Point Toll Demand The Demand for Interstate Access Minutes The Demand for Bypass of
