IDEAS home Printed from https://ideas.repec.org/p/iuj/wpaper/ems_2006_14.html
   My bibliography  Save this paper

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

Author

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.

Suggested Citation

  • Donghun Kim & Philip Sugai, 2006. "Willingness to Pay for Service Attributes in the Japanese Digital Content Market," Working Papers EMS_2006_14, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2006_14
    as

    Download full text from publisher

    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2006_14.pdf
    File Function: First version, 2006
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee, Jongsu & Kim, Yeonbae & Lee, Jeong-Dong & Park, Yuri, 2006. "Estimating the extent of potential competition in the Korean mobile telecommunications market: Switching costs and number portability," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 107-124, January.
    2. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," Department of Economics, Working Paper Series qt3tb6j874, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    3. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    4. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
    5. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," Department of Economics, Working Paper Series qt1j6814b3, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herriges, Joseph A. & Phaneuf, Daniel J., 1999. "Controlling for Correlation Across Choice Occasions and Sites in a Repeated Mixed Logit Model of Recreation Demand," Western Region Archives 321717, Western Region - Western Extension Directors Association (WEDA).
    2. Frick, Bernd & Barros, Carlos Pestana & Prinz, Joachim, 2010. "Analysing head coach dismissals in the German "Bundesliga" with a mixed logit approach," European Journal of Operational Research, Elsevier, vol. 200(1), pages 151-159, January.
    3. Mika Haapanen & Jari Ritsilä, 2001. "Can migration decisions be affected by income taxation policies?," ERSA conference papers ersa01p41, European Regional Science Association.
    4. Siikamki, Juha, 2001. "Valuing Benefits of Finnish Forest Biodiversity Conservation: Fixed and Random Parameter Logit Models for Pooled Contingent Valuation and Contingent Rating/Ranking Survey Data," Western Region Archives 321696, Western Region - Western Extension Directors Association (WEDA).
    5. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    6. Stephane Hess & John W. Polak, 2004. "An analysis of parking behaviour using discrete choice models calibrated on SP datasets," ERSA conference papers ersa04p60, European Regional Science Association.
    7. Layton, David F., 2000. "Random Coefficient Models for Stated Preference Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 21-36, July.
    8. Siikamaki, Juha & Layton, David F., 2007. "Discrete choice survey experiments: A comparison using flexible methods," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 122-139, January.
    9. Campbell, Danny & Hutchinson, W. George & Scarpa, Riccardo, 2006. "Using Discrete Choice Experiments to Derive Individual-Specific WTP Estimates for Landscape Improvements under Agri-Environmental Schemes: Evidence from the Rural Environment Protection Scheme in Irel," Sustainability Indicators and Environmental Valuation Working Papers 12220, Fondazione Eni Enrico Mattei (FEEM).
    10. repec:ehu:biltok:5564 is not listed on IDEAS
    11. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    12. De Lapparent, Matthieu, 2005. "Déplacements domicile-travail en Île-de-France et choix individuels du mode de transport," L'Actualité Economique, Société Canadienne de Science Economique, vol. 81(3), pages 485-520, Septembre.
    13. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    14. Haapanen, Mika, 2002. "Variation of migration behaviour in population," ERSA conference papers ersa02p283, European Regional Science Association.
    15. Swait, Joffre, 2023. "Distribution-free estimation of individual parameter logit (IPL) models using combined evolutionary and optimization algorithms," Journal of choice modelling, Elsevier, vol. 47(C).
    16. A. de Palma & C. Fontan, 2001. "Choix modal et valeur du temps en Ile-de-France," THEMA Working Papers 2001-20, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    17. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    18. Wang, Xuehong & Bennett, Jeff & Xie, Chen & Zhang, Zhitao & Liang, Dan, 2007. "Estimating non-market environmental benefits of the Conversion of Cropland to Forest and Grassland Program: A choice modeling approach," Ecological Economics, Elsevier, vol. 63(1), pages 114-125, June.
    19. Edward Morey & Kathleen Greer Rossmann, 2003. "Using Stated-Preference Questions to Investigate Variations in Willingness to Pay for Preserving Marble Monuments: Classic Heterogeneity, Random Parameters, and Mixture Models," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 27(3), pages 215-229, November.
    20. Marcucci, Edoardo & Gatta, Valerio, 2012. "Dissecting preference heterogeneity in consumer stated choices," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 331-339.
    21. Campbell, Danny, 2007. "Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7975, Agricultural Economics Society.

    More about this item

    Keywords

    Mixed logit; Hierarchical Bayesian model; Japanese Digital Content Market;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iuj:wpaper:ems_2006_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kazumi Imai, Office of Academic Affairs (email available below). General contact details of provider: https://edirc.repec.org/data/gsiujjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.