Willingness to Pay for Service Attributes in the Japanese Digital Content Market
AbstractWe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2006_14.
Length: 12 pages
Date of creation: Dec 2006
Date of revision:
Contact details of provider:
Postal: 777 Kokusai-cho, Minami Uonuma0-shi, Niigata 949-7277 JAPAN
Web page: http://www.iuj.ac.jp/research/
More information through EDIRC
Mixed logit; Hierarchical Bayesian model; Japanese Digital Content Market;
Find related papers by 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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt3tb6j874, University of California Transportation Center.
- Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt1j6814b3, University of California Transportation Center.
- Klemperer, Paul, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 375-94, May.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kazumi Imai, Office of Academic Affairs).
If references are entirely missing, you can add them using this form.