Download This PaperHeterogenous Switching Costs
28 Pages Posted: 5 Feb 2014
There are 2 versions of this paper
Heterogenous Switching Costs
CESifo Working Paper Series No. 4587
Number of pages: 28
Posted: 05 Feb 2014
You are currently viewing this paper
Downloads
63
Heterogenous Switching Costs
CEPR Discussion Paper No. DP9809
Number of pages: 31
Posted: 02 Jun 2014
Date Written: January 30, 2014
Abstract
We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. 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.
Keywords: switching cost
JEL Classification: D430, L130
Suggested Citation: Suggested Citation
Biglaiser, Gary and Cremer, Jacques and Dobos, Gergely, Heterogenous Switching Costs (January 30, 2014). CESifo Working Paper Series No. 4587, Available at SSRN: https://ssrn.com/abstract=2390630 or http://dx.doi.org/10.2139/ssrn.2390630
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.