Negative Option Contracts and Consumer Switching Costs
نویسندگان
چکیده
منابع مشابه
Vertical integration and exclusivity contracts when consumers have switching costs
This paper extends the literature on switching costs by considering what happens when retailers and manufacturers are separate entities and some customers are locked in with retailers. This separation introduces a dynamic inconsistency problem as manufacturers face the problem of extracting too much surplus from the retailer in which case the retailer has no incentive to build a subscriber base...
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A model of vertical integration is studied. Upstream firms sell differentiated inputs; downstream firms bundle them to make final products. Downstream products are sold as option contracts, which allow consumers to choose from a set of commodities at predetermined prices. The model is illustrated by examples in telecommunication and health markets. Equilibria of the integration game must result...
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ژورنال
عنوان ژورنال: Southern Economic Journal
سال: 1993
ISSN: 0038-4038
DOI: 10.2307/1060081