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

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

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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.[a + aaet ) Tj (qtJ ) + pXj + yz, + alt;r, (4.6) where 0 is a vector of estimated parameters.9 1 normalized Viq (e. : alt;9) to ... i will switch from k to j can be specified by Vr(k^j\ep s, : 0) = Pr ( VtJ {er.0)-ck + s, agt; max { Vik (e, : 0) + slk , Vim ( e, :0)-ck+ sim , s. } ... is a value that the consumer obtains when leaving the cellular service market.


Title:An Empirical Analysis of Consumers' Switching Decisions in the Mobile Service Industry
Author: Jiyoung Kim
Publisher:ProQuest - 2008
ISBN-13:

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