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...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 2; pp. 366 - 394
Autor principal: Shcherbakov, Oleksandr
Formato: Artículo
Publicado: Wiley-Blackwell Summer2016
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Measuring consumer switching costs in the television industry.
      aug:
        au: Shcherbakov, Oleksandr
        affil: University of Mannheim
      su:
        Consumer behavior
        Television equipment industry
        Dynamic models
        Market share
        Market pricing
      sug:
        subj:
          Consumer behavior
          Home entertainment equipment merchant wholesalers
          Audio and Video Equipment Manufacturing
          Television equipment industry
          Dynamic models
          Market share
          Market pricing
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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