Model of churn in the telecommunications market with network effects Cover Image

Model odejść klientów na rynku telekomunikacyjnym z uwzględnieniem efektów sieciowych
Model of churn in the telecommunications market with network effects

Author(s): Bogumił Kamiński, Marek Antosiewicz, Mateusz Zawisza, Piotr Wojewnik
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: churn; network effects; multiagent simulation

Summary/Abstract: We investigate the problem of churn in telecommunication industry considering the calls network effects. Assuming the calling party pays and the on-net/off-net prices differ we expect the network effects to appear. In particular, if an individual leaves the company, the costs of the people calling him do change. In some situations it would be fruitful for them to follow the churning person – the phenomenon called induced churn. It would be beneficial to the telco company to identify the clients potentially inducing the highest churn and our aim is to identify the factors determining the induced churn potential. For this task we investigate some network basing on empirical data. The calls network is modeled with Watts-Strogatz graph, while the calls intensity – with exponential and Pareto probability density functions.

  • Issue Year: 2011
  • Issue No: 238
  • Page Range: 197-210
  • Page Count: 14
  • Language: Polish