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I explore the competitive effects of on-net/off-net differentiation in a market with two asymmetric networks by combining the literature on on-net/off-net differentiation with research on costly consumer search in an agent-based simulation model. All consumers in the market are subscribed to one...
Persistent link: https://www.econbiz.de/10011416583
Despite the existence of two vast literatures, very little is known about the potential differences or interactions between search and switching costs. This paper demonstrates the benefits of examining the two frictions in unison. First, the paper shows how subtle distinctions between the two...
Persistent link: https://www.econbiz.de/10014210351
This paper studies regulatory policy interventions aimed at protecting vulnerable consumers who are disengaged and thus exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established rms are...
Persistent link: https://www.econbiz.de/10011912984
This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established firms are challenged by new...
Persistent link: https://www.econbiz.de/10012583369
In this paper, we use a unique database on switching between mobile handsets in a sample of about 5,000 subscribers using tariffs without commitment from a single mobile operator on monthly basis between March 2012 and December 2014. We estimate discrete choice model in which we account for...
Persistent link: https://www.econbiz.de/10012005366
In this paper, we use a unique dataset on switching between mobile handsets in a sample of about 8,623 subscribers using tariffs without handset subsidies from a single mobile operator on a monthly basis between July 2011 and December 2014. We estimate a discrete choice model in which we account...
Persistent link: https://www.econbiz.de/10011955550
This paper estimates demand for quadruple play mobile tariffs using a database of subscribers to a single mobile operator from a single town in a European country which has full coverage with both ADSL and FTTH broadband technologies. Based on the demand estimation we find that consumer...
Persistent link: https://www.econbiz.de/10010395763
We assess how the advent of smartphones affected consumer switching costs in the mobile communications market, using data from two surveys conducted in South Korea. A nested logit random utility model is employed to explain consumers' choice over service type and carrier, and to estimate...
Persistent link: https://www.econbiz.de/10012945949
We study a consumer non-sequential search oligopoly model with search cost heterogeneity. We first prove that an equilibrium in mixed strategies always exists. We then examine the nonparametric identification and estimation of the costs of search. We find that the sequence of points on the...
Persistent link: https://www.econbiz.de/10011373819
In many markets, firms offering low-quality goods are more prominent than firms offering high-quality goods. Then, consumers are perfectly informed about the good of the prominent low-quality firm but incur search costs to bring the high-quality good of a competitor to mind. We analyze under...
Persistent link: https://www.econbiz.de/10014467690