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What is Impact of Shorter Lock-In Periods in Telecom about?
This research note examines the welfare implications of shortening lock-in periods in telecommunications contracts, revealing that such changes decrease firm profits more than they increase consumer surplus. The study utilizes household-level data and a multinomial logit model, finding that increased churn leads to higher costs for consumers switching providers, which outweighs the benefits of reduced lock-in periods. The findings suggest that regulators must balance consumer flexibility with the need for f
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- 7xm65wrxhv
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- EN