Farrell, Joseph; Klemperer, Paul - C.E.P.R. Discussion Papers - 2006
, it later 'tips' to monopoly, after which entry is hard, often even too hard given incompatibility. And while switching … costs can encourage small-scale entry, they discourage sellers from raiding one another’s existing customers, and so also … discourage more aggressive entry. Because of these competitive effects, even inefficient incompatible competition is often more …