Measuring consumer switching costs in the television industry.
In this article, I develop and estimate a model of dynamic consumer behavior with switching costs in the market for paid-television services. I estimate the parameters of the structural model using data on cable and satellite systems across local US television markets over the period 1992-2006. The...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 2; pp. 366 - 394 |
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| Formato: | Artículo |
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Wiley-Blackwell
Summer2016
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | In this article, I develop and estimate a model of dynamic consumer behavior with switching costs in the market for paid-television services. I estimate the parameters of the structural model using data on cable and satellite systems across local US television markets over the period 1992-2006. The results suggest switching costs range from $159 to $242 for cable and from $212 to $276 for satellite providers in 1997 dollars. Using a simple dynamic model of cable providers, I demonstrate that switching costs of these magnitudes can significantly affect the firms' optimal strategies. |
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