Welfare Effects of Entry into Markets with Switching Costs.
In many markets, consumers have costs of switching between products that are functionally identical. This note shows that entry of efficient low-cost competitors into these markets may be socially detrimental. In a linear model, entry reduces social welfare (as conventionally defined) in more than h...
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| Format: | Journal article |
| Langue: | English |
| Publié: |
1988
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