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Willingness to Pay for Digital Contents in Japan

Author

Listed:
  • Donghun Kim

    (Yonsei University)

  • Philip Sugai

    (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.

Suggested Citation

  • Donghun Kim & Philip Sugai, 2010. "Willingness to Pay for Digital Contents in Japan," Economics Bulletin, AccessEcon, vol. 30(3), pages 1745-1752.
    • Handle: RePEc:ebl:ecbull:eb-10-00056
    as

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    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.
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    More about this item

    Keywords

    Willingness to Pay; Digital Contents;

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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