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It is well known that the double marginalization problem in the vertical relation can be eliminated by collusion, but it is undesirable because of the monopoly pricing outcome. This study addresses the role of downstream market competition under symbiotic production and demonstrates that...
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Within a mere 5 years of market competition, the mobile communications sector in Taiwan has exceeded a 100% penetration rate, currently ranking near the top of the world. In an even more stunning development, the public incumbent, Chunghwa Telecom, has handed the leadership status to a market...
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This paper uses a binary logit model to investigate the factors that influence subscribers to stay or migrate based on the competitive nature of Taiwan's mobile phone industry and subscribers' habit formation regarding service providers. The results show that subscribers' satisfaction, switching...
Persistent link: https://www.econbiz.de/10009199828
This study adopts fee thresholds to measure users' fee sensitivity and employs a two-step logit model to predict a phone user's probability of choosing a certain service provider. The results indicate that the choice probability can be overestimated if the reference fee effect is not taken into...
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