Protecting sticky consumers in essential markets

Walter Beckert () and Paolo Siciliani
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Walter Beckert: Institute for Fiscal Studies and Birkbeck, University of London

No W21/10, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established ?rms are challenged by new entrants. We identify circumstances under which such interventions can be counterproductive, both with regard to the stated consumer protection objective and the complementary aim to promote competition.

Date: 2021-04-27
New Economics Papers: this item is included in nep-com, nep-cwa, nep-his and nep-reg
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Related works:
Journal Article: Protecting Sticky Consumers in Essential Markets (2022)
Working Paper: Protecting Sticky Consumers in Essential Markets (2022)
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