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Estimating Consumer Inertia in Repeated Choices of Smartphones

Author

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  • Lukasz Grzybowski

    (SES - Département Sciences Economiques et Sociales - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris, ECOGE - Economie Gestion - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom Paris - IMT - Institut Mines-Télécom [Paris] - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris)

  • Ambre Nicolle

    (ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz])

Abstract

For a sample of 9,799 subscribers to a single mobile operator, we observe switching between mobile handsets between July 2011 and December 2014. We estimate a discrete choice model in which we account for disutility from switching to different operating systems and brands. Our estimation results indicate the presence of significant inertia in the choice of operating systems and brands. We use our model to simulate market shares in the absence of switching costs and conclude that the market shares of Android and smaller operating systems would increase at the expense of the market share of iOS in such context.

Suggested Citation

  • Lukasz Grzybowski & Ambre Nicolle, 2021. "Estimating Consumer Inertia in Repeated Choices of Smartphones," Post-Print hal-03235889, HAL.
    • Handle: RePEc:hal:journl:hal-03235889
    DOI: 10.1111/joie.12239
    Note: View the original document on HAL open archive server: https://telecom-paris.hal.science/hal-03235889v1
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    References listed on IDEAS

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    Cited by:

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    2. Griffin, Míde & Lyons, Sean & Mohan, Gretta & Joseph, Merin & Domhnaill, Ciarán Mac & Evans, John, 2022. "Intra-operator mobile plan switching: Evidence from linked survey and billing microdata," Telecommunications Policy, Elsevier, vol. 46(7).
    3. Massoud Moslehpour & Sahand E. P. Faez & Brij B. Gupta & Varsha Arya, 2023. "A Fuzzy-Based Analysis of the Mediating Factors Affecting Sustainable Purchase Intentions of Smartphones: The Case of Two Brands in Two Asian Countries," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    4. Kawaguchi, Kohei & Kuroda, Toshifumi & Sato, Susumu, 2023. "Relevant markets and market power of mobile apps," Japan and the World Economy, Elsevier, vol. 67(C).
    5. Luo, Jinjing & Moschini, GianCarlo & Perry, Edward D., 2023. "Switching costs in the US seed industry: Technology adoption and welfare impacts," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    6. Drouard, Joeffrey, 2022. "Content-distribution strategies in markets with locked-in customers," International Journal of Industrial Organization, Elsevier, vol. 80(C).
    7. Doan, Thanh & Manenti, Fabio M. & Mariuzzo, Franco, 2023. "Platform competition in the tablet PC market: The effect of application quality," International Journal of Industrial Organization, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Smartphones; Consumer Inertia; Switching Costs; Mixed Logit; iOS; Android;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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