Huang, Ching-I (2008): Intra-Household Effects on Demand for Telephone Service: Empirical Evidence.
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I present a game-theoretical model to estimate consumption demand, accounting for intra-household interaction among household members. Although multiple Nash equilibria of consumption decisions may exist in a household, model parameters are pointwise identified from household-level data for households with only two members. I propose a semiparametric maximum likelihood estimator and apply it to empirically analyze the subscription decision for cellular phone service in Taiwan. On average, a consumer's probability of subscribing to cellular service rises 35 percentage points when the other household member chooses to subscribe. This result suggests the existence of intra-household network effects on cellular phone consumption. The intra-household effect increases in household income, but decreases in the number of kids and the age difference in a household.
|Item Type:||MPRA Paper|
|Original Title:||Intra-Household Effects on Demand for Telephone Service: Empirical Evidence|
|Keywords:||consumption externality, multiple Nash equilibria, demand estimation, mobile phone service, cellular phone service, network effect|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation
D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
|Depositing User:||Ching-I Huang|
|Date Deposited:||21. Jan 2008 19:12|
|Last Modified:||12. Feb 2013 17:53|