eprintid: 16551 rev_number: 8 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/01/65/51 datestamp: 2015-03-16 14:49:38 lastmod: 2021-04-02 15:49:25 status_changed: 2015-03-16 14:49:38 type: monograph metadata_visibility: show creators_name: Lam, Wing Man Wynne creators_idrefppn: 182193195 title: Switching Costs in Two-sided Markets ispublished: pub subjects: subjects_ECO abstract: 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. date: 2014-08 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/28398 faculty: tse divisions: tse keywords: switching costs keywords: two-sided markets keywords: network externality keywords: naivety keywords: loyalty language: en has_fulltext: TRUE subjectsJEL: JEL_D4 subjectsJEL: JEL_L1 view_date_year: 2014 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 14-517 book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:28398 harvester_local_overwrite: oai_set harvester_local_overwrite: faculty harvester_local_overwrite: site harvester_local_overwrite: creators_idrefppn oai_lastmod: 2015-07-31T18:00:02Z oai_set: tse oai_set: ut1c site: ut1 citation: Lam, Wing Man Wynne (2014) Switching Costs in Two-sided Markets. TSE Working Paper, n. 14-517 document_url: https://publications.ut-capitole.fr/id/eprint/16551/1/wp_tse_517.pdf