{"title":"The Impact of Mobile Number Portability on Demand Price Elasticities in Sub-Saharan African Countries","authors":"Onkokame Mothobi","doi":"10.1515/rne-2020-0023","DOIUrl":null,"url":null,"abstract":"Abstract This paper examines the effect of mobile number portability (MNP) on own- and cross-price elasticities. We use quarterly data for 27 mobile operators in seven Sub-Saharan Africa countries between 2010Q4 and 2014Q4 to estimate a differentiated products demand model. We find that the implementation of MNP increases price elasticities of demand for mobile services. This increase in price elasticities may be a result of reduction in switching costs between operators. On average, the introduction of MNP increases own-price elasticities by 0.47 in absolute value. We compare the level of price elasticities before and after the implementation of MNP in Ghana and Kenya, which implemented this policy in the time period of our study. Our results suggest that in Ghana, MNP increased own-price elasticities by an average of 0.35 in absolute term from an average of −0.74. In Kenya, the introduction of MNP increased own-price elasticities by an average of 0.21 in absolute term from a lower average of −0.39. However, we find that the average own-price elasticities in Kenya and Ghana remained small even after the implementation of MNP relative to other countries without MNP in place.","PeriodicalId":45659,"journal":{"name":"Review of Network Economics","volume":"291 1","pages":"249 - 268"},"PeriodicalIF":0.9000,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Network Economics","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1515/rne-2020-0023","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1
Abstract
Abstract This paper examines the effect of mobile number portability (MNP) on own- and cross-price elasticities. We use quarterly data for 27 mobile operators in seven Sub-Saharan Africa countries between 2010Q4 and 2014Q4 to estimate a differentiated products demand model. We find that the implementation of MNP increases price elasticities of demand for mobile services. This increase in price elasticities may be a result of reduction in switching costs between operators. On average, the introduction of MNP increases own-price elasticities by 0.47 in absolute value. We compare the level of price elasticities before and after the implementation of MNP in Ghana and Kenya, which implemented this policy in the time period of our study. Our results suggest that in Ghana, MNP increased own-price elasticities by an average of 0.35 in absolute term from an average of −0.74. In Kenya, the introduction of MNP increased own-price elasticities by an average of 0.21 in absolute term from a lower average of −0.39. However, we find that the average own-price elasticities in Kenya and Ghana remained small even after the implementation of MNP relative to other countries without MNP in place.
期刊介绍:
The Review of Network Economics seeks to help policy makers, academics, and practitioners keep informed of new research and policy debate in network economics and related subjects that are relevant to the study of network industries. By publishing high quality research on topical issues relevant to network industries, it is hoped readers will be able to gain a deeper understanding of the economic issues involved and that this will improve the quality of decision making by private and public organisations, and debate among researchers. The articles can cover specific network industries, or may deal with general issues that have relevance to a number of different network industries, including topics in the economics of networks, regulation, competition law, or industrial organisation. Papers that provide insights into policy debates are especially welcome, as are up-to-date surveys, book reviews, and comments.