RT Monograph
SR 00
A1 Lam, Wing Man Wynne
T1 Switching Costs in Two-sided Markets
YR 2014
FD 2014-08
VO 14-517
K1 switching costs
K1 two-sided markets
K1 network externality
K1 naivety
K1 loyalty
AB This paper studies a dynamic two-sided market in which consumers face switching costs between competing products. I first show that, in a symmetric equilibrium, switching costs lower the first-period price if network externalities are strong. By contrast, switching costs soften price competition in the initial period if network externalities are weak and consumers are more patient than the platforms. Second, an increase in switching costs on one side decreases the first-period price on the other side. Finally, consumer heterogeneity such as the presence of more loyal and naive customers on one side intensifies first-period competition on this side but softens first-period competition on the other side.
T2 TSE Working Paper
PB TSE Working Paper
AV Published
LK https://publications.ut-capitole.fr/id/eprint/16551/
UL http://tse-fr.eu/pub/28398