Heterogenous switching costs

Biglaiser, Gary, Crémer, Jacques and Dobos, Gergely (2016) Heterogenous switching costs. International Journal of Industrial Organization, 47. pp. 62-87.

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Official URL: http://tse-fr.eu/pub/31233

Abstract

We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers benefits the incumbent, despite the fact that it never sells to any of them.

Item Type: Article
Language: English
Date: July 2016
Refereed: Yes
Uncontrolled Keywords: switching, cost
JEL codes: D43 - Oligopoly and Other Forms of Market Imperfection
L13 - Oligopoly and Other Imperfect Markets
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 05 Dec 2016 13:21
Last Modified: 26 Mar 2018 08:32
OAI ID: oai:tse-fr.eu:31233
URI: http://publications.ut-capitole.fr/id/eprint/22543

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