Author: Marc Pomp
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 132
Book Description
Competition when Consumers Have Switching Costs
Author: Paul Klemperer
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages : 22
Book Description
Publisher:
ISBN:
Category : Applied mathematics
Languages : en
Pages : 22
Book Description
Switch on the Competition
Author: Marc Pomp
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 132
Book Description
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 132
Book Description
Bertrand Competition in Markets with Network Effects and Switching Costs
Bargains Followed by Bargains
Author: Jason Pearcy
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
Book Description
In markets where consumers have switching costs and firms cannot price discriminate, firms have two conflicting strategies. A firm can either offer a low price to attract new consumers and build future market share or a firm can offer a high price to exploit the partial lock-in of their existing consumers. This paper develops a theory of competition when overlapping generations of consumers have switching costs and firms produce differentiated products. Competition takes place over an infinite horizon with any number of firms. This paper shows that the relationship between the level of switching costs, firms' discount rate, and the number of firms determines whether firms offer low or high prices. Similar to previous duopoly studies, switching costs are likely to facilitate lower (higher) equilibrium prices when switching costs are small (large) or when a firm's discount rate is large (small). Unlike previous studies this paper demonstrates that the number of firms also determines whether switching costs are pro- or anti-competitive, and with a sufficiently large (small) number of firms switching costs are pro- (anti-) competitive.
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
Book Description
In markets where consumers have switching costs and firms cannot price discriminate, firms have two conflicting strategies. A firm can either offer a low price to attract new consumers and build future market share or a firm can offer a high price to exploit the partial lock-in of their existing consumers. This paper develops a theory of competition when overlapping generations of consumers have switching costs and firms produce differentiated products. Competition takes place over an infinite horizon with any number of firms. This paper shows that the relationship between the level of switching costs, firms' discount rate, and the number of firms determines whether firms offer low or high prices. Similar to previous duopoly studies, switching costs are likely to facilitate lower (higher) equilibrium prices when switching costs are small (large) or when a firm's discount rate is large (small). Unlike previous studies this paper demonstrates that the number of firms also determines whether switching costs are pro- or anti-competitive, and with a sufficiently large (small) number of firms switching costs are pro- (anti-) competitive.
The Antitrust Paradox
Author: Robert Bork
Publisher:
ISBN: 9781736089712
Category :
Languages : en
Pages : 536
Book Description
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Publisher:
ISBN: 9781736089712
Category :
Languages : en
Pages : 536
Book Description
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Do Switching Costs Make Markets More Or Less Competitive?
Author: V. Brian Viard
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Do switching costs reduce or intensify price competition in markets where firms charge the same price to old and new consumers? The answer is theoretically ambiguous because a firm prefers to charge a higher price to previous purchasers who are "locked-in" and a lower price to unattached consumers who offer higher future profitability. 800-number portability provides empirical evidence to determine whether switching costs reduce or intensify price competition under a single price regime. Before portability, a customer had to change toll-free numbers in order to change service providers. In May 1993, 800-numbers became portable, under a regulatory regime that precluded price discrimination between old and new consumers. I test how AT&T and MCI adjusted their toll-free services prices in response to portability. I find that the firms reduced prices with portability, implying that the elimination of switching costs due to portability made the market more competitive. Thus, despite rapid growth in toll-free services, the firms' incentives to charge a higher price to "locked-in" consumers exceeded their incentive to capture new consumers. Prices on larger contracts dropped more post-portability than those on smaller contracts, consistent with greater "lock-in" for larger users. I also find evidence that price changes after portability's announcement but before implementation are consistent with rational expectations assumptions of theoretical switching costs models.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Do switching costs reduce or intensify price competition in markets where firms charge the same price to old and new consumers? The answer is theoretically ambiguous because a firm prefers to charge a higher price to previous purchasers who are "locked-in" and a lower price to unattached consumers who offer higher future profitability. 800-number portability provides empirical evidence to determine whether switching costs reduce or intensify price competition under a single price regime. Before portability, a customer had to change toll-free numbers in order to change service providers. In May 1993, 800-numbers became portable, under a regulatory regime that precluded price discrimination between old and new consumers. I test how AT&T and MCI adjusted their toll-free services prices in response to portability. I find that the firms reduced prices with portability, implying that the elimination of switching costs due to portability made the market more competitive. Thus, despite rapid growth in toll-free services, the firms' incentives to charge a higher price to "locked-in" consumers exceeded their incentive to capture new consumers. Prices on larger contracts dropped more post-portability than those on smaller contracts, consistent with greater "lock-in" for larger users. I also find evidence that price changes after portability's announcement but before implementation are consistent with rational expectations assumptions of theoretical switching costs models.
Bayesian Statistics and Marketing
Author: Peter E. Rossi
Publisher: John Wiley & Sons
ISBN: 0470863684
Category : Mathematics
Languages : en
Pages : 368
Book Description
The past decade has seen a dramatic increase in the use of Bayesian methods in marketing due, in part, to computational and modelling breakthroughs, making its implementation ideal for many marketing problems. Bayesian analyses can now be conducted over a wide range of marketing problems, from new product introduction to pricing, and with a wide variety of different data sources. Bayesian Statistics and Marketing describes the basic advantages of the Bayesian approach, detailing the nature of the computational revolution. Examples contained include household and consumer panel data on product purchases and survey data, demand models based on micro-economic theory and random effect models used to pool data among respondents. The book also discusses the theory and practical use of MCMC methods. Written by the leading experts in the field, this unique book: Presents a unified treatment of Bayesian methods in marketing, with common notation and algorithms for estimating the models. Provides a self-contained introduction to Bayesian methods. Includes case studies drawn from the authors’ recent research to illustrate how Bayesian methods can be extended to apply to many important marketing problems. Is accompanied by an R package, bayesm, which implements all of the models and methods in the book and includes many datasets. In addition the book’s website hosts datasets and R code for the case studies. Bayesian Statistics and Marketing provides a platform for researchers in marketing to analyse their data with state-of-the-art methods and develop new models of consumer behaviour. It provides a unified reference for cutting-edge marketing researchers, as well as an invaluable guide to this growing area for both graduate students and professors, alike.
Publisher: John Wiley & Sons
ISBN: 0470863684
Category : Mathematics
Languages : en
Pages : 368
Book Description
The past decade has seen a dramatic increase in the use of Bayesian methods in marketing due, in part, to computational and modelling breakthroughs, making its implementation ideal for many marketing problems. Bayesian analyses can now be conducted over a wide range of marketing problems, from new product introduction to pricing, and with a wide variety of different data sources. Bayesian Statistics and Marketing describes the basic advantages of the Bayesian approach, detailing the nature of the computational revolution. Examples contained include household and consumer panel data on product purchases and survey data, demand models based on micro-economic theory and random effect models used to pool data among respondents. The book also discusses the theory and practical use of MCMC methods. Written by the leading experts in the field, this unique book: Presents a unified treatment of Bayesian methods in marketing, with common notation and algorithms for estimating the models. Provides a self-contained introduction to Bayesian methods. Includes case studies drawn from the authors’ recent research to illustrate how Bayesian methods can be extended to apply to many important marketing problems. Is accompanied by an R package, bayesm, which implements all of the models and methods in the book and includes many datasets. In addition the book’s website hosts datasets and R code for the case studies. Bayesian Statistics and Marketing provides a platform for researchers in marketing to analyse their data with state-of-the-art methods and develop new models of consumer behaviour. It provides a unified reference for cutting-edge marketing researchers, as well as an invaluable guide to this growing area for both graduate students and professors, alike.
The Slump in Europe
Author: Jean-Paul Fitoussi
Publisher: Wiley-Blackwell
ISBN:
Category : Europe
Languages : en
Pages : 168
Book Description
Publisher: Wiley-Blackwell
ISBN:
Category : Europe
Languages : en
Pages : 168
Book Description
A Short Survey on Switching Costs and Dynamic Competition
Author: J. Miguel Villas-Boas
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
When consumers have switching costs of changing the product that they purchase from period to period firms may compete aggressively to attract them, to potentially take advantage of the consumers' future inertia. Similarly, consumers may foresee that they may be held up, and adjust their choices. This paper considers these market forces in the literature on switching costs, while focusing on the effects of (1) firms being forward-looking, (2) consumers being forward-looking, (3) degree of stability of consumer preferences, and (4) market time horizon.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
When consumers have switching costs of changing the product that they purchase from period to period firms may compete aggressively to attract them, to potentially take advantage of the consumers' future inertia. Similarly, consumers may foresee that they may be held up, and adjust their choices. This paper considers these market forces in the literature on switching costs, while focusing on the effects of (1) firms being forward-looking, (2) consumers being forward-looking, (3) degree of stability of consumer preferences, and (4) market time horizon.
Multi-period Competition with Switching Costs
Author: Alan W. Beggs
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 52
Book Description
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 52
Book Description