Exclusivity, Bundling and Switching in Communications Markets

Burnett, Tim (2013) Exclusivity, Bundling and Switching in Communications Markets. Doctoral thesis, University of East Anglia.

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    Abstract

    Abstract
    This thesis empirically analyses two case studies of markets associated with high-tech
    goods or services. In both cases the analysis includes an extensive literature review and
    in-depth study of market characteristics. These serve to inform the investigations and
    also provide technical background.
    The �rst part of the thesis examines the international distribution of the Apple
    iPhone and the incentives of the manufacturerto distribute the product exclusively to
    mobile network operators. The study uses a novel application of a double-hurdle model
    to analyse a cross-sectional dataset of 187 countries featuring industry-speci�c and
    demographic variables drawn from both o�-the-shelf sources and from an analysis of
    several hundred individual sources of evidence. The results show that the mechanisms
    determining the duration of exclusivity agreements di�er from those factors determining
    their initial imposition. In addition, it is shown that the level of competitiveness
    and concentration in the downstream market are signi�cant determinants of both the
    decision to sell in a country and the duration of any exclusivity agreements. The presence
    of competing technological standards is also shown to result in longer periods of
    exclusivity indicating slower di�usion of the product in these countries.
    The second part of the thesis empirically examines the incentives of individuals to
    switch provider of their household communication services in the presence of bundling
    of services. The study uses a random e�ects probit method to analyse survey data of
    2,871 households' communication subscriptions. The results indicate that when service
    subscriptions are bundled there is a signi�cant reduction in the likelihood of an individual
    switching their provider. Furthermore, this e�ect is intensi�ed when the bundle
    includes services in which the provider specialises.
    The results of both studies are consistent with economic predictions of, respectively,
    the use of key di�erentiators by �rms to gain competitive advantages, and the use of
    bundling to create switching costs for consumers. Both studies represent signi�cant
    contributions to the study of vertical restraints, and consumer switching behaviour.

    Item Type: Thesis (Doctoral)
    Faculty \ School: Faculty of Social Sciences > School of Economics
    Depositing User: Mia Reeves
    Date Deposited: 06 Mar 2014 12:42
    Last Modified: 06 Mar 2014 12:42
    URI: https://ueaeprints.uea.ac.uk/id/eprint/47969
    DOI:

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