단말기 보조금 지급이 이동전화시장 경쟁에 미치는 영향 분석

Owing to handset subsidies, large growth in the Korean mobile telephony subscribers has occurred. While most of firms create artificial switching costs by rewarding customers for repeated purchases to retain their customers, mobile telephone carriers discriminate against loyal customers through handset subsidies. This article examines the effect of switching cost on the prices and profits in a two-period, differentiated product duopoly model.