Willingness to Pay for Digital Contents in Japan

Donghun Kim () and Philip Sugai ()
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Donghun Kim: Yonsei University
Philip Sugai: International University of Japan

Economics Bulletin, 2010, vol. 30, issue 3, 1745-1752

Abstract: We estimate a mixed logit demand model for the Japanese digital content market and measure willingness to pay for service attributes. We find that the willingness to pay for an extra unit of service quality ranges from 62 Yen to 83 Yen per month. Meanwhile, the switching cost, a measure of disutility from switching to other service providers is estimated as 340 Yen ($3) per month, which is approximately the same as the current monthly subscription fee.

Keywords: Willingness to Pay; Digital Contents (search for similar items in EconPapers)
JEL-codes: C1 M3 (search for similar items in EconPapers)
Date: 2010-07-12
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