Heterogeneous switching costs

被引:5
作者
Biglaiser, Gary [1 ]
Cremer, Jacques [2 ]
Dobos, Gergely [3 ]
机构
[1] Univ N Carolina, Dept Econ, Chapel Hill, NC 27599 USA
[2] Toulouse Sch Econ, 21 Allee Brienne, F-31015 Toulouse 6, France
[3] European Commiss, DG Competit, Pl Madou 1, B-1210 St Josse Ten Noode, Belgium
基金
欧洲研究理事会;
关键词
Switching cost; Competition; Stackelberg; Bertrand; CUSTOMER MARKETS;
D O I
10.1016/j.ijindorg.2016.04.003
中图分类号
F [经济];
学科分类号
02 ;
摘要
We consider a two period model where consumers have different switching costs. Before the market opens an Incumbent sells to all consumers; after the market opens competitors appear. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers benefits the Incumbent, despite the fact that it never sells to any of them. Furthermore, we identify a free rider effect among consumers. (C) 2016 Elsevier B.V. All rights reserved.
引用
收藏
页码:62 / 87
页数:26
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