Multi-period Competition with Switching Costs

Alan Beggs and Paul Klemperer

Econometrica, 1992, vol. 60, issue 3, 651-66

Abstract: The authors analyze the evolution of duopolists' prices and market shares in an infinite-period market with consumer switching costs in which in every period new consumers arrive and a fraction of old consumers leaves. They show prices (and profits) are higher than without switching costs and that this result does not depend importantly on their specific assumptions. The authors show switching costs make the market more attractive to a new entrant, even though an entrant must overcome the disadvantage that a large fraction of the market is already committed to the incumbent's product. They also examine the effects of market growth. Copyright 1992 by The Econometric Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (179)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819920 ... O%3B2-O&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Multi-Period Competition with Switching Costs (1990)
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:ecm:emetrp:v:60:y:1992:i:3:p:651-66

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().