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Estimating switching costs in the mobile telecommunications industry in the UK

Author

Listed:
  • L. Grzybowski

    (SES - Département Sciences économiques et sociales - LTCI - Laboratoire Traitement et Communication de l'Information - Télécom ParisTech - IMT - Institut Mines-Télécom [Paris] - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper uses multinominal and mixed logit on British consumer panel data from 1999–2001 to estimate switching costs in mobile telephony. The results of the estimation show that consumers of mobile services in the UK face significant switching costs which vary according to network operators. Network operator choice is also explained by observed and unobserved heterogeneity in consumer tastes. Furthermore, the probability of switching depends on consumer characteristics such as age and the ways they spend their free time.

Suggested Citation

  • L. Grzybowski, 2008. "Estimating switching costs in the mobile telecommunications industry in the UK," Post-Print hal-02286636, HAL.
    • Handle: RePEc:hal:journl:hal-02286636
    as

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    Citations

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    Cited by:

    1. Basaure, Arturo & Suomi, Henna & Hämmäinen, Heikki, 2014. "Effects of transaction and switching costs on mobile market performance," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106830, International Telecommunications Society (ITS).
    2. Lucio Fuentelsaz & Juan Pablo Maicas & Yolanda Polo, 2012. "Switching Costs, Network Effects, and Competition in the European Mobile Telecommunications Industry," Information Systems Research, INFORMS, vol. 23(1), pages 93-108, March.
    3. Calzada, Joan & García-Mariñoso, Begoña & Suárez, David, 2023. "Do telecommunications prices depend on consumer engagement?," Information Economics and Policy, Elsevier, vol. 62(C).
    4. Soomro, Yasir & Al-Sehli, Ahmed Nafe, 2020. "Determinants of Customer Churn: An Empirical Study Of Cellular Subscribers From Saudi Arabia," MPRA Paper 101398, University Library of Munich, Germany.
    5. Drouard, Joeffrey, 2022. "Content-distribution strategies in markets with locked-in customers," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    6. Yuk‐fai Fong & Jin Li & Ke Liu, 2016. "When Does Aftermarket Monopolization Soften Foremarket Competition?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(4), pages 852-879, December.
    7. Florez Ramos, Esmeralda & Blind, Knut, 2020. "Data portability effects on data-driven innovation of online platforms: Analyzing Spotify," Telecommunications Policy, Elsevier, vol. 44(9).
    8. Mothobi, Onkokame, 2022. "The impact of telecommunication regulatory policy on mobile retail price in Sub-Saharan African countries," Information Economics and Policy, Elsevier, vol. 58(C).
    9. Capponi, Giovanna & Corrocher, Nicoletta & Zirulia, Lorenzo, 2021. "Personalized pricing for customer retention: Theory and evidence from mobile communication," Telecommunications Policy, Elsevier, vol. 45(1).

    More about this item

    Keywords

    L13; L43; L5; L96;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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