Huang, Ching I.Ching I.Huang2019-10-092019-10-092013-06-0115707156https://scholars.lib.ntu.edu.tw/handle/123456789/426491Knowing the determinants of consumption decisions is important for targeted marketing. This paper proposes a method to study household adoption of network goods. I empirically investigate the factors which affect the interactions among household members in the choice of telephone service using a game-theoretical model. The proposed semiparametric maximum likelihood estimator accounts for potential multiple Nash equilibria. I apply the method to study the subscription decisions for cellular phone service in Taiwan. On average, a consumer's probability of subscribing to cellular service rises 13 percentage points when the other household member chooses to subscribe, suggesting the existence of intra-household network effects. Moreover, the intra-household effect is heterogeneous among households. It increases in household income, but decreases in the number of children and the age difference within a household. Firms can substantially increase the effectiveness of a marketing strategy by targeting on the observed consumer characteristics. © 2012 Springer Science+Business Media New York.Consumption externality | Demand estimation | Mobile phone service | Multiple Nash equilibria | Network effect | Targeted marketing10.1007/s11129-012-9130-yhttps://api.elsevier.com/content/abstract/scopus_id/848828983742-s2.0-84882898374WOS:000318186400003https://api.elsevier.com/content/abstract/scopus_id/84882898374