Estimating consumer lock-in effects from firm-level data
Gabor Kezdi () and
No 2012_17, CEU Working Papers from Department of Economics, Central European University
This paper proposes a practical method for estimating consumer lock-in effects from firm-level data. The method compares the behavior of already contracted consumers to the behavior of new consumers, the latter serving as a counterfactual to the former. In panel regressions on firms' incoming and quitting consumers, we look at the differential response to price changes and identify the lock-in effect from the difference between the two. We discuss the potential econometric issues and measurement problems and offer solutions to them. We illustrate our method by analyzing the market for personal loans in Hungary and find strong lock-in effects.
New Economics Papers: this item is included in nep-com and nep-mkt
Date: 2012-10-19, Revised 2012-10-19
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.personal.ceu.hu/staff/repec/pdf/2012_17.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ceu:econwp:2012_17
Access Statistics for this paper
More papers in CEU Working Papers from Department of Economics, Central European University Contact information at EDIRC.
Bibliographic data for series maintained by Anita Apor ().