منابع مشابه
Information Technology and Switching Costs Information Technology and Switching Costs
Switching costs, the real or perceived cost of changing product providers, has become increasingly important in information-intensive businesses. Reduced search and transactions costs have made it possible for customers to more readily evaluate alternative suppliers, increasing switching. At the same time, the high fixed cost structure of customer acquisition and operations in information-inten...
متن کاملLocal Interactions under Switching Costs
We study the impact of switching costs on the long run outcome in 2 × 2 coordination games played in the circular city model of local interactions. For low levels of switching costs the predictions are in line with the previous literature and the risk dominant convention is the unique long run equilibrium. For intermediate levels of switching costs the set of long run equilibria still contains ...
متن کاملSwitching costs in medical education
Dear Editor: Medical education is associated with significant costs [1]. Those who are responsible for the delivery of medical education must continually make decisions that have financial consequences [2]. Sometimes decisions are to invest in a new product or service, sometimes to disinvest. Sometimes decisions involve the educator realising that they should switch from one provider of medical...
متن کاملThe value of switching costs
We study a dynamic model with an incumbent monopolist and entry in every subsequent period. We first show that if all consumers have the same switching cost, then the intertemporal profits of the incumbent are the same as if there was only one period. We then study the consequences of heterogeneity of switching costs. We prove that even low switching cost customers have value for the incumbent:...
متن کاملSwitching Costs and Network Compatibility
This paper investigates how consumer switching costs affect firms’ compatibility choices and social welfare in network industries. Firms face a choice between two modes of competition: make their networks incompatible and compete fiercely for market dominance, or make their networks compatible and have mild competition. By incentivizing firms to harvest their locked-in consumers rather than pri...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 2016
ISSN: 0167-7187
DOI: 10.1016/j.ijindorg.2016.04.003