A comment on: "Revisiting dynamic duopoly with consumer switching costs"
نویسندگان
چکیده
A comment on: ‘‘Revisiting dynamic duopoly with consumer switching costs’’ Eric T. Anderson, Nanda Kumar, and Surendra Rajiv Kellogg School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208, USA School of Management, University of Texas at Dallas, P.O. Box 830688, Richardson, TX 75083-0688, USA NUS Business School, National University of Singapore, BIZ 1, #04-20, 1 Business Link, Singapore 117592
منابع مشابه
Consumer heterogeneity and pricing in a duopoly with switching costs∗
It is well-known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. We show that introducing consumer heterogeneity tends to increase the critical switching cost and thereby reduce the stability of the collusive outcome. A testable implication is that widesp...
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We present a dynamic duopoly model in which consumers have meanvariance preferences. Due to the form of the utility function, two effects arise endogenously in the presence of information asymmetries: (a) switching cost e¤ect, that increases the consumers willingness to pay for the brand that she tested before, and (b) perception e¤ect, that increases the consumers willingness to pay if the s...
متن کاملReimbursing Consumers’ Switching Costs in Network Industries
This paper investigates firms’ decisions to reimburse consumers’ switching costs in network industries. Prior literature finds that switching costs incentivize firms to harvest their locked-in consumers rather than price aggressively for market dominance, thereby resulting in a lower market concentration. Using a dynamic duopoly model, we show that this result is reversed if firms have the opti...
متن کاملConsumer heterogeneity, incomplete information and pricing in a duopoly with switching costs
It is well known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. With heterogeneous consumers and incomplete information about individual consumers’ types, monopoly pricing entails second-degree price discrimination with inefficient contracts for low dema...
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This paper analyzes competition in a two-period differentiated-products duopoly in the presence of both switching costs and network effects. Consumers are assumed to have rational expectation about network sizes, and future prices. The equilibrium prices in both periods are lower than markets with just switching costs and they decrease with the magnitude of network effects. Hence, in any period...
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ورودعنوان ژورنال:
- J. Economic Theory
دوره 116 شماره
صفحات -
تاریخ انتشار 2004