Elasticity of demand for cellular phone network access in Malaysia

This study analyzes the elasticity of demand for cellular phone network access and the network effects in Malaysia. It uses quarterly data from 2003Q1 to 2011Q4 with 7 difference variables in two separate equations. The dependent variable is the penetration rate of cellular phone. From the analysi...

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Main Authors: Rusli Latimaha, Zakaria Bahari
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:http://journalarticle.ukm.my/10784/
http://journalarticle.ukm.my/10784/1/jeko_50%282%29-10.pdf
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author Rusli Latimaha,
Zakaria Bahari,
author_facet Rusli Latimaha,
Zakaria Bahari,
author_sort Rusli Latimaha,
building UKM Institutional Repository
collection Online Access
description This study analyzes the elasticity of demand for cellular phone network access and the network effects in Malaysia. It uses quarterly data from 2003Q1 to 2011Q4 with 7 difference variables in two separate equations. The dependent variable is the penetration rate of cellular phone. From the analysis, we found that the penetration rates of cellular phone are strongly related to the factors highlighted in the study and all the variables are strongly significant. The F-test also suggested that the entity Fixed Effects Model (FEM) is the appropriate model and more preferred for this study. From the entity FEM analysis, all independent variables are significant. The price elasticity of demand, crossprice elasticity and income elasticity are elastic. The result also shows that the fixed-line is complementary and luxury goods to the cellular phone network in Malaysia and the networks externalities are strongly significant when we used number of subscriber as a proxy.
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spelling oai:generic.eprints.org:107842017-10-10T09:33:14Z http://journalarticle.ukm.my/10784/ Elasticity of demand for cellular phone network access in Malaysia Rusli Latimaha, Zakaria Bahari, This study analyzes the elasticity of demand for cellular phone network access and the network effects in Malaysia. It uses quarterly data from 2003Q1 to 2011Q4 with 7 difference variables in two separate equations. The dependent variable is the penetration rate of cellular phone. From the analysis, we found that the penetration rates of cellular phone are strongly related to the factors highlighted in the study and all the variables are strongly significant. The F-test also suggested that the entity Fixed Effects Model (FEM) is the appropriate model and more preferred for this study. From the entity FEM analysis, all independent variables are significant. The price elasticity of demand, crossprice elasticity and income elasticity are elastic. The result also shows that the fixed-line is complementary and luxury goods to the cellular phone network in Malaysia and the networks externalities are strongly significant when we used number of subscriber as a proxy. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10784/1/jeko_50%282%29-10.pdf Rusli Latimaha, and Zakaria Bahari, (2016) Elasticity of demand for cellular phone network access in Malaysia. Jurnal Ekonomi Malaysia, 50 (2). pp. 125-131. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2016-2.html
spellingShingle Rusli Latimaha,
Zakaria Bahari,
Elasticity of demand for cellular phone network access in Malaysia
title Elasticity of demand for cellular phone network access in Malaysia
title_full Elasticity of demand for cellular phone network access in Malaysia
title_fullStr Elasticity of demand for cellular phone network access in Malaysia
title_full_unstemmed Elasticity of demand for cellular phone network access in Malaysia
title_short Elasticity of demand for cellular phone network access in Malaysia
title_sort elasticity of demand for cellular phone network access in malaysia
url http://journalarticle.ukm.my/10784/
http://journalarticle.ukm.my/10784/
http://journalarticle.ukm.my/10784/1/jeko_50%282%29-10.pdf