Estimation of demand function of products on mobile communication market based on dynamic panel data model

This paper mainly studies the demand function of mobile voice service on Chinese communication market. Considering the characteristics of this product, consumption habit is introduced into our model, thus dynamic panel data model and corresponding estimating methods are used to estimate the model. We compare our results with studies done by other researchers, the comparison shows that consumption habit has an significant impact on the demand of mobile voice service, its entrance in the model can correct the effect of the price of mobile voice service. We also found that price was a statistically significant factor that influenced demand. Price elasticity is less than one which is different with other researches.