G2TT
来源类型Discussion paper
规范类型论文
来源IDDP8970
DP8970 Switching Costs and Equilibrium Prices
Luis Cabral
发表日期2012-05-23
出版年2012
语种英语
摘要In a competitive environment, switching costs have two effects. First, they increase the market power of a seller with locked-in customers. Second, they increase competition for new customers. I provide conditions under which switching costs decrease or increase equilibrium prices. Taken together, the suggest that, if markets are very competitive to begin with, then switching costs make them even more competitive; whereas if markets are not very competitive to begin with, then switching costs make them even less competitive. In the above statements, by "competitive" I mean a market that is close to a symmetric duopoly or one where the sellers' discount factor is very high.
主题Industrial Organization
关键词Price competition Switching costs
URLhttps://cepr.org/publications/dp8970
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/537822
推荐引用方式
GB/T 7714
Luis Cabral. DP8970 Switching Costs and Equilibrium Prices. 2012.
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