English, Article, Journal or magazine article edition: Markets with Search and Switching Costs Chris Wilson

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Bookmark: http://trove.nla.gov.au/version/49173
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Markets with Search and Switching Costs
Author
  • Chris Wilson
Physical Description
  • preprint
Notes
  • By incorporating the additional existence of switching costs into an oligopoly model of search by Stahl (1989), this paper dispels the misleading idea that search costs can simply be treated as a form of switching cost. Due to the assumption that search costs, unlike switching costs, are incurred unconditionally on the decision to switch suppliers it is shown that the anticompetitive effects of search costs are consistently largers than those from an equivalent level of switching costs. The finding suggests that obfuscation practices that aim to deter consumers from searching, such as competing on deliberately complex tariffs, may be particularly powerful relative to practices that increase the costs of substitution between firms, such as loyalty programs and termination fees.
  • Search costs, switching costs, obfuscation
  • RePEc:ccp:wpaper:wp06-10
Language
  • English
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