Template-type: ReDIF-Paper 1.0
Author-Name: Donghun Kim
Author-Name-First: Donghun
Author-Name-Last: Kim
Author-Workplace-Name: International University of Japan
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Author-Name: Philip Sugai
Author-Name-First: Philip
Author-Name-Last: Sugai
Author-Email: philip@iuj.ac.jp
Author-Workplace-Name: International University of Japan
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Title: Willingness to Pay for Service Attributes in the Japanese Digital Content Market
Abstract: We estimate a mixed logit demand model for the Japanese digital content market and measure willingness to pay for service attributes. We find that the willingness to pay for an extra unit of service quality ranges from 62 Yen to 83 Yen per month. Meanwhile, the switching cost, a measure of disutility from switching to other service providers is estimated as 340 Yen ($3) per month, which is approximately the same as the current monthly subscription fee.
Classification-JEL: D12, L86, C11, C35
Length: 12 pages
Creation-Date: 2006-12
Number: EMS_2006_14
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2006_14.pdf
File-Format: Application/pdf
File-Function: First version, 2006
File-Size: 58KB
Keywords: Mixed logit, Hierarchical Bayesian model, Japanese Digital Content Market
Handle: RePEc:iuj:wpaper:EMS_2006_14