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An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry

Jiyoung Kim
4.9/5 (20282 ratings)
Description:Telecommunication authorities have made efforts to promote market competition by reducing switching costs and, subsequently, facilitating consumer switching between network carriers. Since a consumer's current choice determines her subscription status and future utility, optimal switching must be the solution of a dynamic problem. In this thesis, I develop an empirical framework to analyze consumers' dynamic switching decisions in the mobile service industry. It allows us to investigate driving forces of consumer switching and evaluate the effects of the telecommunication policy related with switching costs.;I estimated a dynamic switching decision model where consumers with heterogeneous switching costs can switch only once. Endogenous evolution in the distribution of consumer heterogeneity suggests that consumers with lower switching costs switch relatively earlier and select them out of the potential switchers market. Then I estimated a dynamic model of repeated switching with homogeneous consumers. The results suggest that switching costs and future expectation plays important roles in consumers' switching decisions. Finally, I measure the effects of mobile number portability on the magnitude of switching costs and consumer surplus. I find that the mobile number portability changes switching costs and consumer surplus by more than 20%. An empirical analysis of consumer switching behavior has important implications for the policy makers as well as the network service providers. Based on analysis of consumer behavior, service providers can establish strategies to stimulate switching from competitors and prevent switching to competitors. This has become more important, as the increase in penetration rate consequently diminishes the pool of potential subscribers. For telecommunication regulators who have tried to reduce switching costs, it would be necessary to construct a structural model of consumer switching in order to evaluate and predict the precise impacts of the telecommunication policies.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry. To get started finding An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.
Pages
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PDF, EPUB & Kindle Edition
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Release
ISBN
0549636730

An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry

Jiyoung Kim
4.4/5 (1290744 ratings)
Description: Telecommunication authorities have made efforts to promote market competition by reducing switching costs and, subsequently, facilitating consumer switching between network carriers. Since a consumer's current choice determines her subscription status and future utility, optimal switching must be the solution of a dynamic problem. In this thesis, I develop an empirical framework to analyze consumers' dynamic switching decisions in the mobile service industry. It allows us to investigate driving forces of consumer switching and evaluate the effects of the telecommunication policy related with switching costs.;I estimated a dynamic switching decision model where consumers with heterogeneous switching costs can switch only once. Endogenous evolution in the distribution of consumer heterogeneity suggests that consumers with lower switching costs switch relatively earlier and select them out of the potential switchers market. Then I estimated a dynamic model of repeated switching with homogeneous consumers. The results suggest that switching costs and future expectation plays important roles in consumers' switching decisions. Finally, I measure the effects of mobile number portability on the magnitude of switching costs and consumer surplus. I find that the mobile number portability changes switching costs and consumer surplus by more than 20%. An empirical analysis of consumer switching behavior has important implications for the policy makers as well as the network service providers. Based on analysis of consumer behavior, service providers can establish strategies to stimulate switching from competitors and prevent switching to competitors. This has become more important, as the increase in penetration rate consequently diminishes the pool of potential subscribers. For telecommunication regulators who have tried to reduce switching costs, it would be necessary to construct a structural model of consumer switching in order to evaluate and predict the precise impacts of the telecommunication policies.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry. To get started finding An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.
Pages
Format
PDF, EPUB & Kindle Edition
Publisher
Release
ISBN
0549636730
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