Customer switching costs are an important factor in account-based services such as telecommunications, financial, insurance and brokerage services. In these businesses, existing customers incur significant costs if they switch to another provider. Such costs include physical configuration and...

In this paper, we study strategic capacity rationing when customers have boundedly rational expectations in the sense of anecdotal reasoning. Our S(K) model generalizes the existing literature by allowing customer expectations to be boundedly rational, and reduces to the rational-expectations...