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Estimating Consumer Inertia in Repeated Choices of Smartphones*

Abstract : For a sample of 9,799 subscribers to a single mobile operator, we observe switching between mobile handsets between July 2011 and December 2014. We estimate a discrete choice model in which we account for disutility from switching to different operating systems and brands. Our estimation results indicate the presence of significant inertia in the choice of operating systems and brands. We use our model to simulate market shares in the absence of switching costs and conclude that the market shares of Android and smaller operating systems would increase at the expense of the market share of iOS in such context.
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https://hal.telecom-paris.fr/hal-03235889
Contributor : Lukasz Grzybowski Connect in order to contact the contributor
Submitted on : Wednesday, May 26, 2021 - 9:28:11 AM
Last modification on : Wednesday, November 17, 2021 - 12:33:44 PM
Long-term archiving on: : Friday, August 27, 2021 - 6:22:13 PM

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Lukasz Grzybowski, Ambre Nicolle. Estimating Consumer Inertia in Repeated Choices of Smartphones*. Journal of Industrial Economics, Wiley, 2021, 69 (1), pp.33-82. ⟨10.1111/joie.12239⟩. ⟨hal-03235889⟩

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