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Consumer choice and local network effects in mobile telecommunications in Turkey
Authors:Mehmet Karacuka  A Nazif Çat?k  Justus Haucap
Institution:1. Ege University, Department of Economics, 35040 Bornova, Izmir, Turkey;2. Heinrich-Heine-University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Universitätsstr. 1, 40225 Düsseldorf, Germany
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.
Keywords:
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