Does Bundling Decrease the Probability of Switching Telecommunications Service Providers?
Stephanie Lee ()
Additional contact information
Stephanie Lee: Stanford University
Review of Industrial Organization, 2017, vol. 50, issue 3, No 3, 303-322
Abstract I examine whether bundling of telecommunications services makes individuals less likely to switch their service provider because of increased switching costs. Using a detailed survey dataset from the Korea Information Society Development Institute (KISDI), I find that Internet subscribers who previously bundled are less likely to switch their Internet service provider than are those who did not bundle. The results are robust to correction for the potential selection problem through the use of an endogenous treatment model. The finding that bundling reduces the probability of switching service providers and locks-in existing users can have important implications for market competitiveness and consumer welfare.
Keywords: Bundling; Switching costs; Telecommunications (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11151-016-9532-1 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:revind:v:50:y:2017:i:3:d:10.1007_s11151-016-9532-1
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2
Access Statistics for this article
Review of Industrial Organization is currently edited by L.J. White
More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().