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Jurnal Ekonomi Malaysia

50 (2) 2016 125 – 132

Elasticity of Demand for Cellular Phone Network Access in Malaysia
Keanjalan Permintaan untuk Akses Rangkaian Telefon Selular di Malaysia

School of Social Science
University Sains Malaysia
11700 Minden, Penang
MALAYSIA

rusli780@yahoo.com

School of Social Science
University Sains Malaysia
11700 Minden, Penang
MALAYSIA

bzak@usm.my

Abstract

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, cross- price 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.

Keywords

Demand; elasticity; network; panel data
http://dx.doi.org/10.17576/JEM-2016-5002-10
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Bibliography

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Latimaha, , & Bahari, (2016). Elasticity of Demand for Cellular Phone Network Access in Malaysia. Jurnal Ekonomi Malaysia, 50(2), 125–132. http://dx.doi.org/10.17576/JEM-2016-5002-10

@article{latimaha2016elasticity,
  title={Elasticity of Demand for Cellular Phone Network Access in Malaysia},
  author={Latimaha, Rusli and Bahari, Zakaria},
  journal={Jurnal Ekonomi Malaysia},
  volume={50},
  number={2},
  pages={125—132},
 

year={2016},
}

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