Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145672
Authors: 
Rickert, Dennis
Year of Publication: 
2016
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Empirical IO A02-V2
Abstract: 
This study estimates a dynamic discrete choice model to analyze the effect of switching costs on firm market power. Given the presence of switching costs for consumers in the market for disposable diapers, I show how firms apply dynamic strategies to a market for differentiated products and in a context of vertical retailer-manufacturer relationships. My findings support the existence of state dependence in consumer demand. Furthermore, I show that the firm profits would be higher in a counterfactual scenario of no switching costs.
JEL: 
L10
L20
L60
Document Type: 
Conference Paper

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