Behavioral Bias in Choosing Between Post-Paid and Pre-Paid Mobile Internet Plansin Thailand

Thunwar Phansatarn

Asian Journal of Applied Economics/ Applied Economics Journal, 2020, vol. 27, issue 1, 127-156

Abstract: Amobile Internet users’ survey for Over-the-Top (OTT) service in Thailand shows that most users choose a post-paid plan comparedto apre-paid plan, which contrasts with total mobile user preferences in the industry. The average revenue per user for post-paid usersis also higherthan forpre-paid users, but thisis consistent with the industryoverall. This information may reveal behavioralbias amongThai mobile Internet users. This research was undertakento study the behavioral bias in choosing mobile Internet plans. The survey wasconducted by Office of the National Broadcasting and Telecommunications Commission (NBTC) in 17 provinces, coveringall regions in Thailand. Logit regressionanalysis shows thatusershaveincreasedprobability of choosinga post-paid plan. Userbehavior reveals a bias towardpost-paid plans,which offer a flat rate. Two policy implications from this study are that inexpensive flat-rate plans can be used to promote growth in mobile Internet service, and that support for newentrants can be offered by providing plans that rely on user behavior.

Keywords: behavioral bias; mobile internet plan; OTT applications (search for similar items in EconPapers)
JEL-codes: D12 D90 (search for similar items in EconPapers)
Date: 2020
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