A Behavioral economic interpretation of the preference for flat rates: The case of post-paid mobile phone services

Hitoshi Mitomo, Tokio Otsuka, Kiminori Nakaba

研究成果: Chapter

9 引用 (Scopus)

抄録

This paper aims to empirically test the existence of a biased preference for flat rate service plans related to mobile phones, and to examine how psychological factors can affect such preferences. We define such preference as 'flat-rate preference'and interpret it in terms of behavioral economic concepts. Behavioral economics, in spite of its limitations in empirical analysis, provides deeper insights into human behavior than traditional economic models since it considers psychological factors within decision-making processes and allows for irrational choices by consumers. By applying several important concepts from behavioral economics, we seek to investigate a more reasonable explanation for mobile users' flat-rate preference. Loss aversion, reference dependence, the shape of probability weighting function, mental accounting, ambiguity aversion and cognitive dissonance are employed to examine such preference. Non-parametric methods are applied in the empirical analysis to data that was collected through an online survey in Japan. We successfully show the existence of the flat-rate preference in terms of loss aversion and reference dependence although we failed to identify the influences of the shape of the probability weighting function. The other three concepts could also be recognized as factors conducive to preference behaviors.

元の言語English
ホスト出版物のタイトルContributions to Economics
ページ59-73
ページ数15
DOI
出版物ステータスPublished - 2009

出版物シリーズ

名前Contributions to Economics
ISSN(印刷物)14311933

Fingerprint

Mobile phone
Psychological factors
Loss aversion
Probability weighting function
Reference dependence
Empirical analysis
Factors
Online survey
Decision-making process
Human behavior
Mental accounting
Japan
Ambiguity aversion
Cognitive dissonance
Nonparametric methods

ASJC Scopus subject areas

  • Economics and Econometrics

これを引用

A Behavioral economic interpretation of the preference for flat rates : The case of post-paid mobile phone services. / Mitomo, Hitoshi; Otsuka, Tokio; Nakaba, Kiminori.

Contributions to Economics. 2009. p. 59-73 (Contributions to Economics).

研究成果: Chapter

Mitomo, Hitoshi ; Otsuka, Tokio ; Nakaba, Kiminori. / A Behavioral economic interpretation of the preference for flat rates : The case of post-paid mobile phone services. Contributions to Economics. 2009. pp. 59-73 (Contributions to Economics).
@inbook{30217995374d489eb0fd55af1828656d,
title = "A Behavioral economic interpretation of the preference for flat rates: The case of post-paid mobile phone services",
abstract = "This paper aims to empirically test the existence of a biased preference for flat rate service plans related to mobile phones, and to examine how psychological factors can affect such preferences. We define such preference as 'flat-rate preference'and interpret it in terms of behavioral economic concepts. Behavioral economics, in spite of its limitations in empirical analysis, provides deeper insights into human behavior than traditional economic models since it considers psychological factors within decision-making processes and allows for irrational choices by consumers. By applying several important concepts from behavioral economics, we seek to investigate a more reasonable explanation for mobile users' flat-rate preference. Loss aversion, reference dependence, the shape of probability weighting function, mental accounting, ambiguity aversion and cognitive dissonance are employed to examine such preference. Non-parametric methods are applied in the empirical analysis to data that was collected through an online survey in Japan. We successfully show the existence of the flat-rate preference in terms of loss aversion and reference dependence although we failed to identify the influences of the shape of the probability weighting function. The other three concepts could also be recognized as factors conducive to preference behaviors.",
author = "Hitoshi Mitomo and Tokio Otsuka and Kiminori Nakaba",
year = "2009",
doi = "10.1007/978-3-7908-2082-9-4",
language = "English",
isbn = "9783790820812",
series = "Contributions to Economics",
pages = "59--73",
booktitle = "Contributions to Economics",

}

TY - CHAP

T1 - A Behavioral economic interpretation of the preference for flat rates

T2 - The case of post-paid mobile phone services

AU - Mitomo, Hitoshi

AU - Otsuka, Tokio

AU - Nakaba, Kiminori

PY - 2009

Y1 - 2009

N2 - This paper aims to empirically test the existence of a biased preference for flat rate service plans related to mobile phones, and to examine how psychological factors can affect such preferences. We define such preference as 'flat-rate preference'and interpret it in terms of behavioral economic concepts. Behavioral economics, in spite of its limitations in empirical analysis, provides deeper insights into human behavior than traditional economic models since it considers psychological factors within decision-making processes and allows for irrational choices by consumers. By applying several important concepts from behavioral economics, we seek to investigate a more reasonable explanation for mobile users' flat-rate preference. Loss aversion, reference dependence, the shape of probability weighting function, mental accounting, ambiguity aversion and cognitive dissonance are employed to examine such preference. Non-parametric methods are applied in the empirical analysis to data that was collected through an online survey in Japan. We successfully show the existence of the flat-rate preference in terms of loss aversion and reference dependence although we failed to identify the influences of the shape of the probability weighting function. The other three concepts could also be recognized as factors conducive to preference behaviors.

AB - This paper aims to empirically test the existence of a biased preference for flat rate service plans related to mobile phones, and to examine how psychological factors can affect such preferences. We define such preference as 'flat-rate preference'and interpret it in terms of behavioral economic concepts. Behavioral economics, in spite of its limitations in empirical analysis, provides deeper insights into human behavior than traditional economic models since it considers psychological factors within decision-making processes and allows for irrational choices by consumers. By applying several important concepts from behavioral economics, we seek to investigate a more reasonable explanation for mobile users' flat-rate preference. Loss aversion, reference dependence, the shape of probability weighting function, mental accounting, ambiguity aversion and cognitive dissonance are employed to examine such preference. Non-parametric methods are applied in the empirical analysis to data that was collected through an online survey in Japan. We successfully show the existence of the flat-rate preference in terms of loss aversion and reference dependence although we failed to identify the influences of the shape of the probability weighting function. The other three concepts could also be recognized as factors conducive to preference behaviors.

UR - http://www.scopus.com/inward/record.url?scp=77950449587&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=77950449587&partnerID=8YFLogxK

U2 - 10.1007/978-3-7908-2082-9-4

DO - 10.1007/978-3-7908-2082-9-4

M3 - Chapter

AN - SCOPUS:77950449587

SN - 9783790820812

T3 - Contributions to Economics

SP - 59

EP - 73

BT - Contributions to Economics

ER -