two sources of inertia, inattention to plan choice and switching costs. We develop a panel data model with separate … attention and choice stages, linked by heterogeneity in acuity, i.e., the ability and willingness to make diligent choices …. Using data from Medicare Part D, we find that inattention is an important source of inertia but switching costs also play a …

This article examines the market power of branded prescription drugs faced with generic competition. Using prescription … ambiguous, moderate switching costs and sufficient competition for new patients increase competitive pressure. Second, if …

savings they would obtain if they were to switch water tariff. Our empirical framework separates two sources of inertia … opportunity they are offered and that, conditional on paying attention, median switching costs are £89. A model where all … customers are assumed to pay attention instead delivers implausibly high switching costs, with a median of £482. Looking at the …