Consumer choice and local network effects in mobile telecommunications in Turkey

Authors:
Mehmet Karacuka;A. Nazif ÇAtıK;Justus Haucap
Affiliations:
Ege University, Department of Economics, 35040 Bornova, Izmir, Turkey;Ege University, Department of Economics, 35040 Bornova, Izmir, Turkey;Heinrich-Heine-University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Universitätsstr. 1, 40225 Düsseldorf, Germany
Venue:
Telecommunications Policy
Year:
2013

Citing 8
Cited 0

The Economics of Network Industries

The Economics of Network Industries
Telecommunications policy in Turkey: Dismantling barriers to growth

Telecommunications Policy
When good intentions are not enough: Sequential entry and competition in the Turkish mobile industry

Telecommunications Policy
Me and you and everyone we know: An empirical analysis of local network effects in mobile communications

Telecommunications Policy
Competition law and regulation in the Turkish telecommunications industry: Friends or foes?

Telecommunications Policy
Sequencing in telecommunications reform: A review of the Turkish case

Telecommunications Policy
Competition in Turkish mobile telecommunications markets: Price elasticities and network substitution

Telecommunications Policy
Network effects and preference heterogeneity in the case of mobile telecommunications markets

Telecommunications Policy

Quantified Score

Hi-index	0.00

Visualization

Abstract

The aim of this paper is to analyze the extent of network effects in mobile telecommunications in Turkey, and to identify other determinants of consumer choice based on consumer survey data. This study shows that there are regional disparities in the adoption of network services in Turkey, the attractiveness of the different networks varies for consumers between different regions. The results show that local network effects are significant for consumer choice. This finding means that consumers are more likely to be affected by the choices of other people within their local area than by the overall size of a network. Furthermore, local network effects also outweigh macro network effects at least in Turkey.