Differentiation-Induced Switching Costs and Poaching
نویسندگان
چکیده
منابع مشابه
Differentiation-Induced Switching Costs and Poaching
We show that the presence of sufficiently significant switching costs, which are increasing in the degree of product differentiation, generates an equilibrium configuration with maximal differentiation within the framework of a Hotelling model with linear transportation costs. The equilibrium with maximal differentiation offers a formalization of the idea that competing firms have noncooperativ...
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Firms sometimes try to “poach” the current customers of their competitors by offering them special inducements to switch. We analyze duopoly poaching under both short-term and long-term contracts in two polar cases: either each consumer’s brand preferences are constant from one period to the next, or preferences are independent over time. With fixed preferences, poaching induces socially ineffi...
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ژورنال
عنوان ژورنال: Journal of Economics <html_ent glyph="@amp;" ascii="&"/> Management Strategy
سال: 2004
ISSN: 1058-6407,1530-9134
DOI: 10.1111/j.1430-9134.2004.00026.x