We analyze demand for prepaid cellular voice and short message service (SMS) in South Africa by means of a demand-and-supply structural model based on a multinomial specification fitted to a cross-sectional data set on Vodacom customers collected in 2005. We find that consumers are very...

This paper provides some estimates of demand elasticity for prepaid cellular voice and short message service (SMS) in South Africa by fitting a structural discrete consumer choice model to a cross-sectional data set on Vodacom customers collected in 2005. We find higher price elasticities than...

Central features of today’s electronic communications markets are complementarities between the different layers of the value chain, substitutability between some applications, network effects in the provision of content and services, two-sided business models that partly involve indirect...