Traditional oligopoly theories of markets where products are differentiated predict that entry of new firm enhances competition and thereby brings down the equilibrium market price. These theoretical predictions are, however, often challenged by contrasting empirical evidence suggesting that...

"We examine supplier switching decisions using a unique database that tracks firms (credit unions) and their suppliers (data processing vendors); the data are in a panel, allowing us to track supplier switching decisions at a new level of detail. We focus on two sets of relationships. First, we...