Multi-period Competition with Switching Costs: An Overlapping Generations Formulation

Ted To

Journal of Industrial Economics, 1996, vol. 44, issue 1, 81-87

Abstract: The author examines an infinite-period duopoly market with positive consumer switching costs and overlapping generations of consumers. When consumers have a finite time-horizon, then, unlike A. Beggs and R. Klemperer (1992), the two firms may alternate dominance from one period to the next, alternately charging high and low prices. This agrees with the intuition that firms with a high locked-in market share may set price so as to exploit that market share, which causes a subsequent low market share among the new cohort of buyers, leading to lower prices, etc. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819960 ... 0.CO%3B2-E&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:44:y:1996:i:1:p:81-87

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().