Discrete Choice Analysis of Demand for Broadband in Japan |
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Authors: | Takanori Ida Toshifumi Kuroda |
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Institution: | (1) Graduate School of Economics, Kyoto University Yoshida, Sakyo Kyoto, 606-8501, Japan |
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Abstract: | The remarkable development of Japan’s broadband (BB) market has attracted attention worldwide. This paper is one of the first
to analyze Japan’s BB demand (including FTTH) using a discrete choice model. Our main conclusions are first, there is a distinction
between narrowband (NB) and BB services based on a nested choice structure. Second, considering own-price elasticities of
access demand, ADSL is inelastic, but FTTH and CATV are elastic. Third, in ADSL submarkets, low-speed and high-speed ADSL
are becoming more elastic. |
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Keywords: | broadband discrete choice nested logit price elasticity |
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