We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers...

The presence of sticky, often labelled ‘unengaged', consumers is arguably one of the most intractable issues faced by competition regulators, in that it entrenches incumbency advantage. We develop a spatial linear model of heterogeneous switching costs that allows for asymmetric distributions...

The presence of sticky, often labelled ‘unengaged', consumers is arguably one of the most intractable issues faced by competition regulators, in that it entrenches incumbency advantage. We develop a spatial linear model of heterogeneous switching costs that allows for asymmetric distributions...

We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers...

This paper explores competition in the post 1996 long distance telephony market by employing an unusually detailed original data set. New evidence of third degree price discrimination is found with rural, low income, and Native American customer groups facing higher prices. Results indicate that...

The paper develops a static model to explore how, under platform competition, heterogeneous levels of switching costs can give rise to an incumbency advantage. The key condition required for the coexistence of both platforms on the market, to have effective competition, relies on the relative...

We study how firms decide whether to continue an existing relationship or switch the vendor of outsourced services. Because of incomplete contracts and relationship-specific investments, client organizations may face switching costs, which in some cases may be large enough to render vendor...