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Changes in consumers' behavior when a vertically integrated service is separated —The case of Japanese mobile phone services—

Author

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  • Akihiro Nakamura

    (Tezukayama University)

Abstract

In this paper, I empirically examine the consumer behavior change in the case that the current vertically integrated Japanese mobile phone market was separated by employing the stated preference survey. As a hypothetical vertically separated situation, I assumed the introduction of contents compatibility and handsets compatibility among different mobile phone carriers. My analysis also assumed the introduction of mail address portability. My estimation results yield the following implications: (1) handset compatibility, contents compatibility, and mail address portability reduces consumer's switching costs, and (2) current contents incompatibility is offsetting the network quality difference among carriers.

Suggested Citation

  • Akihiro Nakamura, 2010. "Changes in consumers' behavior when a vertically integrated service is separated —The case of Japanese mobile phone services—," Economics Bulletin, AccessEcon, vol. 30(1), pages 437-449.
    • Handle: RePEc:ebl:ecbull:eb-09-00422
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    References listed on IDEAS

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    Cited by:

    1. Akematsu, Yuji & Shinohara, Sobee & Tsuji, Masatsugu, 2012. "Empirical analysis of factors promoting the Japanese 3G mobile phone," Telecommunications Policy, Elsevier, vol. 36(3), pages 175-186.
    2. Nakamura, Akihiro, 2015. "Mobile and fixed broadband access services substitution in Japan considering new broadband features," Telecommunications Policy, Elsevier, vol. 39(2), pages 140-154.
    3. Nakamura, Akihiro, 2017. "Evaluating Customer Reviews in Matching Services on the Internet," 28th European Regional ITS Conference, Passau 2017 169486, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Telecom market; Mobile Phone; Switching costs; Vertically Integrated market; Compatibility; Conjoint analysis; Discrete choice model; Mixed logit model;
    All these keywords.

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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