Bundling Incentives in Markets with Product Complementarities: The Case of Triple-Play

Macieira, João; Pereira, Pedro; Vareda, João

doi:10.2139/ssrn.2335748

Cited by 5 publications

(4 citation statements)

References 61 publications

(72 reference statements)

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“…Wilson and Price [24] empirically examine the switching accuracy of consumers in the British electricity market, and show that consumers are not overly sensitive to the bundle discount. Macieira et al [16] investigate firms' incentives to provide bundles of telecommunication services under an oligopolistic market. Kuroda et al [14] find that Japan's asymmetric regulation, which prohibits the incumbent from bundling telecommunication services, increases the social surplus.…”

Section: Literature Reviewmentioning

confidence: 99%

Consumer switching behavior and bundling: an empirical study of Japan’s retail energy markets

Murakami

2022

IJEPS

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After the full liberalization of Japan's retail electricity and city gas markets, marketing strategies such as the bundling of electricity, gas or other services have become very popular. According to the previous theoretical literature, bundling strategies can increase the switching costs incurred by consumers and reduce the probability of consumers switching retail suppliers. This study empirically examines whether retail suppliers' bundling strategies affect consumers' switching behavior in Japan's retail energy markets. Implementing a discrete choice model using micro-data on households in the Kansai region of Japan, this study obtains results, showing that when consumers subscribe for electricity bundled with gas or other services, they are significantly less likely to switch their electricity suppliers. This paper provides policy implications for reviewing market competition and consumer welfare after the full liberalization of Japan's retail energy markets.

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Section: Literature Reviewmentioning

confidence: 99%

Consumer switching behavior and bundling: an empirical study of Japan’s retail energy markets

Murakami

2022

IJEPS

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“…Fox and Lazzati (2015) provides the identification strategy by using potential games. Macieira et al (2014) broadband, the ongoing migration to FTTH services has been reducing its share in the fixed broadband market (Ida and Sakahira, 2008). By the end of FY2013, its share in the fixed broadband market is only 8.1%.…”

Section: Literature Reviewmentioning

confidence: 99%

“…We adopt the model of Gentzkow (2007) to estimate flexible complementarities/substitutabilities. In addition, to evaluate the effect of bundling, we adopt the model of Macieira et al (2014) to estimate the choice of alternatives. We also control for the endogeneity of expenditure of alternatives by a control function approach by Petrin and Train (2010).…”

Section: Demand Modelmentioning

confidence: 99%

The Impact of Asymmetric Regulation on Product Bundling: The Case of Fixed Broadband and Mobile Communications in Japan

2015

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“…There are only a few empirical papers which focus on the strategic bundling decisions of firms in telecommunications markets. Macieira et al (2013) use data on Portuguese consumers who choose from assortments of different types of telecommunications products to analyze incentives of firms to offer bundles. Crawford and Yurukoglu (2012) use firm-level data to estimate the welfare effects of unbundling in the retail cable television industry in the US.…”

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confidence: 99%

Bundling and Consumer Churn in Telecommunications Markets

Grzybowski

Liang

Zulehner

2021

Review of Network Economics

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In this paper, we analyze how fixed-mobile (quadruple-play) bundling impacts the decision of consumers to churn telecommunications services. We use a database from an European operator of fixed and mobile telecommunications services which includes information about 9.6 million fixed broadband subscribers and 14.2 million mobile subscribers between March 2014 and February 2015. These data is combined with socio-demographic characteristics from each municipality in this country. We find that consumers who bundle fixed and mobile services from the same provider are less likely to churn. Without fixed-mobile bundling the annual churn of fixed broadband consumers would increase from 8.4 to 9.2%. Furthermore, the consumer churn in the mobile market would increase from 11.5 to 13.1%. We conclude that in the current competitive environment in the country considered, bundling has a moderate impact on consumer retention on both fixed and mobile networks.

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Bundling Incentives in Markets with Product Complementarities: The Case of Triple-Play

Cited by 5 publications

References 61 publications

Consumer switching behavior and bundling: an empirical study of Japan’s retail energy markets

Consumer switching behavior and bundling: an empirical study of Japan’s retail energy markets

The Impact of Asymmetric Regulation on Product Bundling: The Case of Fixed Broadband and Mobile Communications in Japan

Bundling and Consumer Churn in Telecommunications Markets

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