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dc.contributor.authorBouckaert, Janen
dc.contributor.authorDegryse, Hansen
dc.contributor.authorProvoost, Thomasen
dc.date.accessioned2009-01-12-
dc.date.accessioned2009-07-28T08:47:30Z-
dc.date.available2009-07-28T08:47:30Z-
dc.date.issued2008-
dc.identifier.urihttp://hdl.handle.net/10419/26494-
dc.description.abstractCompeting firms often have the possibility to jointly determine the magnitude of consumers' switching costs. Examples include compatibility decisions and the option of introducing number portability in telecom and banking. We put forward a model where firms jointly decide to reduce switching costs before competing in prices during two periods. We demonstrate that the outcome hinges crucially on how the joint action reduces consumers' switching costs. In particular, firms will enhance their market power if they implement measures that reduce consumers' switching costs by a lump sum. Conversely, they will preserve market power by not implementing actions that reduce switching costs proportionally. Hence, when policy makers design consumer protection policies, they should not always adopt a favourable attitude towards efforts by firms to reduce switching costs.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2449en
dc.subject.jelD43en
dc.subject.ddc330en
dc.subject.keywordSwitching costsen
dc.subject.keywordmarket poweren
dc.subject.keywordwelfareen
dc.subject.stwWechselkostenen
dc.subject.stwMarktmachten
dc.subject.stwPreiswettbewerben
dc.subject.stwTheorieen
dc.titleEnhancing market power by reducing switching costs-
dc.typeWorking Paperen
dc.identifier.ppn589197169en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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