Empirical Study on Switching Costs Incurred in Telecommunications Markets Considering Self-Selection Bias

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The purpose of this study project is to estimate consumers’ switching costs incurred in changing service providers or services themselves considering their network effects. For this purpose, by using survey data from several web based surveys, we estimated various types switching costs in different layer services, such as contents and applications, network services, and handsets. We focus on switching costs of not only subscription for or usage of services, but also disutility of stopping services. The results of this projects show that there exist various switching costs in various layer service markets.