Enhancing market power by reducing switching costs
نویسندگان
چکیده
منابع مشابه
Interstate Long Distance Rates: Search Costs, Switching Costs, and Market Power
A number of authors have argued that the divestiture of AT&T did not reduce the rates of long distance telephone companies as often believed. However, the literature has offered few explanations as to why competition has not lowered rates. This study argues that rates have failed to fall due to the importance of search and switching costs in the industry. Using a panel data set of rates for the...
متن کاملReducing costs with computer power management
In this work, we present a software-based solution to automate the power control of desktop computers. The deployment of the proposed software system is simply done over the existing infrastructure of the organization, thus minimizing the required investment. Our initial analysis shows a cost reduction of more than 52% by reducing the power consumption of computers and their monitors.
متن کاملThe effect of consumer switching costs on market power of cable television providers
This paper empirically evaluates the effect of consumer switching costs on market power of cable television providers. To do so I propose an algorithm to estimate supply side parameters when the demand side is represented by consumers with persistent heterogeneity in tastes and state-dependent utility. Under such conditions, regardless of whether consumers are forward-looking or behave in a myo...
متن کاملSwitching Costs and Market Competitiveness: De-constructing the Relationship
The conventional wisdom is that switching costs raise prices and make markets less competitive. Dube, Hitsch and Rossi (2009, hereafter DHR) demonstrate a U shaped relationship between switching costs and equilibrium average prices; i.e., prices fall at low levels of switching costs and then rise as switching costs become very high. DHR show this result using a numerical solution of an infinite...
متن کاملMarket Frictions: A Unified Model of Search and Switching Costs
Despite the existence of two vast literatures, very little is known about the potential di¤erences or interactions between search and switching costs. This paper demonstrates the bene ts of examining the two frictions in unison. First, the paper shows how subtle distinctions between the two costs can provide important di¤erences in their e¤ects upon consumer behaviour and market prices. In many...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics Letters
سال: 2012
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2011.07.023