Switching costs in local credit markets
نویسندگان
چکیده
منابع مشابه
Switching Costs in Two-sided Markets∗
In many markets, there are switching costs and network effects. Yet the literature generally deals with them separately. This paper bridges the gap by analyzing their interaction (or “indirect bargain”) in a dynamic two-sided market. It shows that in the symmetric equilibrium, the classic result that the first-period price is U-shaped in switching costs does not emerge, but instead switching co...
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In this paper we investigate the possible presence of switching costs when consumers are offered the opportunity to change their basic health insurance provider. We focus on the specific case of Switzerland which implemented a pure form of competition in basic health insurance markets. We identify several barriers to switching, namely choice overload, status quo bias, the possession of suppleme...
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In the presence of switching costs, firms are often interested in expanding current market shares to exploit their customer base in the future. However, if the product is sold by retailers, manufacturers may face the problem of extracting too much surplus from the retailer. If this happens, then the latter has not an incentive to build a subscriber base. This paper would like to connect two unr...
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The conventional wisdom in economic theory holds that switching costs make markets less competitive. This paper challenges this claim. We formulate an empirically realistic model of dynamic price competition that allows for differentiated products and imperfect lock-in. We calibrate this model with data from frequently purchased packaged goods markets. These data are ideal in the sense that the...
متن کاملLocal Interactions under Switching Costs
We study the impact of switching costs on the long run outcome in 2 × 2 coordination games played in the circular city model of local interactions. For low levels of switching costs the predictions are in line with the previous literature and the risk dominant convention is the unique long run equilibrium. For intermediate levels of switching costs the set of long run equilibria still contains ...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 2011
ISSN: 0167-7187
DOI: 10.1016/j.ijindorg.2011.03.004