Modeling Residential and Business Telecommunication Flows: A Regional Point‐to‐Point Approach | Zendy

Guldmann JeanMichel | Zendy

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Modeling Residential and Business Telecommunication Flows: A Regional Point‐to‐Point Approach

Author(s) -

Guldmann JeanMichel

Publication year - 1992

Publication title -

geographical analysis

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.773

H-Index - 65

eISSN - 1538-4632

pISSN - 0016-7363

DOI - 10.1111/j.1538-4632.1992.tb00256.x

Subject(s) - conversation , point (geometry) , toll , sample (material) , duration (music) , price elasticity of demand , econometrics , economics , telecommunications , computer science , microeconomics , mathematics , sociology , art , chemistry , geometry , literature , chromatography , biology , genetics , communication

Regional telecommunication flows, measured in terms of numbers of messages and conversation minutes, are analyzed with a systematic random sample of toll calls characterized by their timing, duration, cost, and origin‐destination (O‐D) locations. Point‐to‐point models are econometrically estimated, with such independent variables as destination market size, O‐D distance, and average and time‐of‐day (TOD) prices, for the residential and business sectors separately. The results indicate that (1) the demands for calls and conversation minutes are price‐inelastic and slightly elastic, respectively, (2) business demand is relatively more price‐elastic than residential demand, (3) distance is a strong determinant of telephone demand, and (4) most TOD demand substitutions resulting from TOD price changes would take place between the daily and evening rate periods. Several areas for further research are outlined.

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