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...

innovation has attracted considerable interest in recent years in improving competitive advantage for both profit and nonprofit organizations. service innovation offers the potential for substantially improving the performance, but performance gains are often obstructed by users’ unwillingness to accept and use available systems. this research aims to use the concept of reasoned action theory t...