Willingness to Pay for Service Attributes in the Japanese Digital Content Market

Donghun Kim and Philip Sugai ()
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Donghun Kim: International University of Japan, http://www.iuj.ac.jp/
Philip Sugai: International University of Japan, http://www.iuj.ac.jp/

No EMS_2006_14, Working Papers from Research Institute, International University of Japan

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: Mixed logit; Hierarchical Bayesian model; Japanese Digital Content Market (search for similar items in EconPapers)
JEL-codes: C11 C35 D12 L86 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2006-12
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Persistent link: https://EconPapers.repec.org/RePEc:iuj:wpaper:ems_2006_14

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