Abstract

In the December edition of the Atlantic Economic Journal, Drs. Ekelund and Ford [2002] published a paper estimating the own-price elasticity of demand for a combination of unbundled elements commonly referred to as UNE-P (or UNEPlatform). Using a constant elasticity formulation of the demand curve, Ekelund and Ford (“E-F”) estimate an own-price elasticity of –2.7 for UNE-P, indicating that regulated prices for unbundled elements have a potent effect on retail competition in local telecommunications markets.

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