Changes in consumers' behavior when a vertically integrated service is separated —The case of Japanese mobile phone services—

Akihiro Nakamura ()
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Akihiro Nakamura: Tezukayama University

Economics Bulletin, 2010, vol. 30, issue 1, 437-449

Abstract: In this paper, I empirically examine the consumer behavior change in the case that the current vertically integrated Japanese mobile phone market was separated by employing the stated preference survey. As a hypothetical vertically separated situation, I assumed the introduction of contents compatibility and handsets compatibility among different mobile phone carriers. My analysis also assumed the introduction of mail address portability. My estimation results yield the following implications: (1) handset compatibility, contents compatibility, and mail address portability reduces consumer's switching costs, and (2) current contents incompatibility is offsetting the network quality difference among carriers.

Keywords: Telecom market; Mobile Phone; Switching costs; Vertically Integrated market; Compatibility; Conjoint analysis; Discrete choice model; Mixed logit model (search for similar items in EconPapers)
JEL-codes: L1 L9 (search for similar items in EconPapers)
Date: 2010-02-02
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Citations: View citations in EconPapers (3)

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