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Behavioral Bias in Choosing Between Post-Paid and Pre-Paid Mobile Internet Plansin Thailand

Author

Listed:
  • Phansatarn, Thunwar

    (Faculty of Economics, Ramkhamhaeng University, Thailand)

Abstract

Amobile Internet users’ survey for Over-the-Top (OTT) service in Thailand shows that most users choose a post-paid plan comparedto apre-paid plan, which contrasts with total mobile user preferences in the industry. The average revenue per user for post-paid usersis also higherthan forpre-paid users, but thisis consistent with the industryoverall. This information may reveal behavioralbias amongThai mobile Internet users. This research was undertakento study the behavioral bias in choosing mobile Internet plans. The survey wasconducted by Office of the National Broadcasting and Telecommunications Commission (NBTC) in 17 provinces, coveringall regions in Thailand. Logit regressionanalysis shows thatusershaveincreasedprobability of choosinga post-paid plan. Userbehavior reveals a bias towardpost-paid plans,which offer a flat rate. Two policy implications from this study are that inexpensive flat-rate plans can be used to promote growth in mobile Internet service, and that support for newentrants can be offered by providing plans that rely on user behavior.

Suggested Citation

  • Phansatarn, Thunwar, 2020. "Behavioral Bias in Choosing Between Post-Paid and Pre-Paid Mobile Internet Plansin Thailand," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 27(1), pages 127-156, June.
    • Handle: RePEc:ris:apecjn:0041
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    More about this item

    Keywords

    behavioral bias; mobile internet plan; OTT applications;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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