An econometric assessment of telecommunications prices and consumer surplus in Mexico using panel data
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11149_2013_9212_ReferencePDF.pdf
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Author(s)
Hausman, Jerry A.
Ros, Agustin J.
Date Issued
February 2013
Journal
Journal of Regulatory Economics
Publisher
Springer Science+Business Media
Citation
Hausman, Jerry A., and Agustin J. Ros. "An econometric assessment of telecommunications prices and consumer surplus in Mexico using panel data." Journal of Regulatory Economics 43:3 (June 2013), pp. 284-304.
Version
Author's final manuscript
Abstract
We analyze telecommunications prices in Mexico by using a panel data of countries similar to Mexico to estimate demand models for mobile and fixed-line telecommunications. We find that Mexico’s actual mobile and fixed-line prices are below the predicted prices based on similar countries’ prices. Mexican consumers are paying lower prices than what one would expect based on comparisons of comparable countries. We calculate that in 2011 Mexican consumers received at least $4–$5 billion (USD) in consumer surplus from these lower mobile prices and in 2010 they received over $1 billion (USD) in consumer surplus from these lower fixed-line prices. These findings are in contrast to the general perception that concentrated telecommunications markets in Mexico are resulting in high prices and harming consumers.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1007/s11149-013-9212-0
