Showing 1 - 2 of 2
. Depending on the ratio of switching costs to network effects, our model generates convergence to monopoly as well as market … switching costs market sharing is the unique equilibrium and for small switching costs both monopoly and market sharing … equilibria emerge. We also analyze stationary and stable equilibria, where we show that a monopoly outcome is almost inevitable …
Persistent link: https://www.econbiz.de/10005863289
In this paper we estimate and empirically test different behavioral theories of consumer reference price formation. Two major theories are proposed to model the reference price reaction: assimilation contrast theory and prospect theory. We assume that different consumer segments will use...
Persistent link: https://www.econbiz.de/10005861848