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Akihiro Nakamura
''Changes in consumers' behavior when a vertically integrated service is separated —The case of Japanese mobile phone services— ''
( 2010, Vol. 30 No.1 )
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.
Keywords: Telecom market, Mobile Phone, Switching costs, Vertically Integrated market, Compatibility, Conjoint analysis, Discrete choice model, Mixed logit model
JEL: L9 - Industry Studies: Transportation and Utilities: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Jul 20 2009 Manuscript Accepted : Feb 02 2010

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