The effect of shortening lock-in periods in telecommunication services
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/32251 |
Resumo: | In this research note, we study the welfare implications of shortening the length of the lock-in period associated with triple play contracts using household level data, from a large telecommunications provider, for a period of 6 months. Using a multinomial logit model to explain consumer behavior we show that, in our setting, shortening the length of the lock-in period decreases the aggregated profit of the firms in the market more than it increases consumer surplus. This result arises because shortening the length of the lock-in period increases churn, and the costs to set up service for the consumers that churn and join a new carrier supersede the increase in the consumers' willingness to pay for service when the length of the lock-in period shortens. |
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The effect of shortening lock-in periods in telecommunication servicesLock-in periodsSwitching costsTelecommunicationsMultinomial logitIn this research note, we study the welfare implications of shortening the length of the lock-in period associated with triple play contracts using household level data, from a large telecommunications provider, for a period of 6 months. Using a multinomial logit model to explain consumer behavior we show that, in our setting, shortening the length of the lock-in period decreases the aggregated profit of the firms in the market more than it increases consumer surplus. This result arises because shortening the length of the lock-in period increases churn, and the costs to set up service for the consumers that churn and join a new carrier supersede the increase in the consumers' willingness to pay for service when the length of the lock-in period shortens.Veritati - Repositório Institucional da Universidade Católica PortuguesaYang, BaojiangMatos, Miguel Godinho deFerreira, Pedro2020-092020-09-01T00:00:00Z2025-09-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/32251eng0276-778310.25300/MISQ/2020/1483985100330351000576761700011info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:37:42Zoai:repositorio.ucp.pt:10400.14/32251Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:26:01.812421Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The effect of shortening lock-in periods in telecommunication services |
title |
The effect of shortening lock-in periods in telecommunication services |
spellingShingle |
The effect of shortening lock-in periods in telecommunication services Yang, Baojiang Lock-in periods Switching costs Telecommunications Multinomial logit |
title_short |
The effect of shortening lock-in periods in telecommunication services |
title_full |
The effect of shortening lock-in periods in telecommunication services |
title_fullStr |
The effect of shortening lock-in periods in telecommunication services |
title_full_unstemmed |
The effect of shortening lock-in periods in telecommunication services |
title_sort |
The effect of shortening lock-in periods in telecommunication services |
author |
Yang, Baojiang |
author_facet |
Yang, Baojiang Matos, Miguel Godinho de Ferreira, Pedro |
author_role |
author |
author2 |
Matos, Miguel Godinho de Ferreira, Pedro |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Yang, Baojiang Matos, Miguel Godinho de Ferreira, Pedro |
dc.subject.por.fl_str_mv |
Lock-in periods Switching costs Telecommunications Multinomial logit |
topic |
Lock-in periods Switching costs Telecommunications Multinomial logit |
description |
In this research note, we study the welfare implications of shortening the length of the lock-in period associated with triple play contracts using household level data, from a large telecommunications provider, for a period of 6 months. Using a multinomial logit model to explain consumer behavior we show that, in our setting, shortening the length of the lock-in period decreases the aggregated profit of the firms in the market more than it increases consumer surplus. This result arises because shortening the length of the lock-in period increases churn, and the costs to set up service for the consumers that churn and join a new carrier supersede the increase in the consumers' willingness to pay for service when the length of the lock-in period shortens. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-09 2020-09-01T00:00:00Z 2025-09-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/32251 |
url |
http://hdl.handle.net/10400.14/32251 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
0276-7783 10.25300/MISQ/2020/14839 85100330351 000576761700011 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131976780742656 |