Farrell, Joseph; Klemperer, Paul - C.E.P.R. Discussion Papers - 2006
Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even …) changes in efficiency, and gives vendors lucrative ex post market power - over the same buyer in the case of switching costs … costs can encourage small-scale entry, they discourage sellers from raiding one another’s existing customers, and so also …