Coordination and Lock-In: Competition with Switching Costs and Network Effects

Coordination and Lock-In: Competition with Switching Costs and Network E ects Part II of IV Switching Costs Section

Coordination and Lock-In: Competition with Switching Costs

Switching costs and network e ects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in e ciency, and gives vendors lucrative ex post market power|over the same buyer in the case of switching costs (or brand loyalty), or over others...

Dynamic Duopoly Competition with Switching Costs and Network Externalities

This paper analyzes competition in a two-period differentiated-products duopoly in the presence of both switching costs and network effects. Consumers are assumed to have rational expectation about network sizes, and future prices. The equilibrium prices in both periods are lower than markets with just switching costs and they decrease with the magnitude of network effects. Hence, in any period...

The determinants and profitability of switching costs in Chinese banking

Using a sample of 151 banks over the period 2003 to 2010, this paper estimates a model that examines the effect of switching costs in the Chinese loan market on banking profitability. In keeping with the extant empirical literature it reports a positive relationship between bank profitability and switching costs. Furthermore it reports the estimation of a systems model of switching costs and pr...

Providing a Method of Intelligent Charging of Electric Vehicles with Discrete Rates with the Aim of Flattening Load Profile and Reducing Number of Switching Times

From the point of view of network operation, the lack of proper management of electric vehicles in the network can change the load profile of the network and causes numerous peaks and valleys in it, which is not appropriate from the perspective of network operators. In this paper, an intelligent charging strategy in which according to the information recorded by drivers such as the length of th...