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Estimating network choices and switching costs in mobile telephony

Abstract : In this article, we estimate the price elasticities of demand for subscription and consumer switching costs for mobile telephony. We use a panel data of Portuguese consumers to estimate a series of multinomial and mixed logit models. The demand for subscription is found to be elastic and switching costs are large. We use the structural model to perform several policy exercises. Switching costs and brand preferences are shown to be important elements of the market structure of mobile telephony. Price mediated network effects seem to be relatively less important.
Keywords : L13 L43 L5 L96
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Submitted on : Friday, September 13, 2019 - 4:01:07 PM
Last modification on : Friday, April 8, 2022 - 8:18:58 AM


  • HAL Id : hal-02286665, version 1



L. Grzybowski. Estimating network choices and switching costs in mobile telephony. Review of Industrial Organization, 2011, 38 (1), pp.23-42. ⟨hal-02286665⟩



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