This study's empirical analysis shows that the consumers' switching costs when changing SNS are less than that when changing BB service. SNS switching cost is estimated at JPY 944, while that in BB service is estimated at JPY 2864 (JPY 80 = USD 1 on 21st May 2012). According to these results,...

We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the ratio of switching costs to network effects, our modelerates four different market patterns: monopolization and market sharing which can be either monotone or alternating. A...

In this paper we utilize discrete choice experiment method to identify and measure switching costs and network effects in mobile telephony in Poland. Based on hypothetical choices consumers make we construct a conditional random parameters multinomial logit model to analyze their preferences. In...

We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...

This paper probes the phenomenon of delayed cable digitization in countries such as Korea and Taiwan. The paper first performed a cross-country longitudinal analysis on the 16 countries in the Asia Pacific region and found out that 1. inter-platform competition, primarily from DBS, generates the...

Competing firms often have the possibility to jointly determine the magnitude of consumers' switching costs. Examples include compatibility decisions and the option of introducing number portability in telecom and banking. We put forward a model where firms jointly decide to reduce switching...

The working report looks at the actual situation of the German broadband cable market in the context of merger control and sector specific regulation. A crucial problem in dealing with the cable market whether in antitrust cases or in the regulatory context is the precise assessment of the...

This paper models competition between two firms, which provide broadband Internet access in regional markets with different population densities. The firms, an incumbent and an entrant, differ in two ways. First, consumers bear costs when switching to the entrant. Second, the entrant faces a...

Switching costs increase the rigidity of consumers demand and lessen competition between firms, effects that are particularly relevant in the mobile voice services market. This paper characterizes the most important mobility restrictive factors for consumers in this market, presenting specific...

Using a model with switching costs it is shown that firms may have an incentive to set up a new firm supplying to the same market under quite general conditions. The new firm attracts some market share of the founding firm. The start up firm is thus an act of cannibalization. Moreover, entry of...