Can Switching Costs Reduce Prices?

dc.creatorCastilho, Rafael
dc.date2018-05-25
dc.date.accessioned2022-11-03T21:19:37Z
dc.date.available2022-11-03T21:19:37Z
dc.identifierhttps://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/65890
dc.identifier.urihttps://repositorioslatinoamericanos.uchile.cl/handle/2250/5048082
dc.descriptionThe existence of switching costs for consumers may aect prices.While rms have an incentive to increase prices and exploit its currentconsumers, they also might reduce prices to increase the number ofconsumers next period. This paper presents a model of consumer andpricing behavior with switching costs to investigate how prices vary withdierent switching costs levels. I also present a method to estimatemodel's parameters. Results show that prices do not monotonicallyincrease with switching costs. Market shares and prots increase forsmall switching cost values and decrease for larger ones.en-US
dc.formatapplication/pdf
dc.languageeng
dc.publisherSociedade Brasileira de Econometriaen-US
dc.relationhttps://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/65890/71715
dc.rightsCopyright (c) 2018 Brazilian Review of Econometricspt-BR
dc.sourceBrazilian Review of Econometrics; Vol. 38 No. 1 (2018); 175-195en-US
dc.sourceBrazilian Review of Econometrics; v. 38 n. 1 (2018); 175-195pt-BR
dc.source1980-2447
dc.subjectDemand and supplyen-US
dc.subjectdiscrete choiceen-US
dc.subjectswitching costen-US
dc.subjectC35en-US
dc.subjectL13en-US
dc.titleCan Switching Costs Reduce Prices?en-US
dc.typeinfo:eu-repo/semantics/article
dc.typeinfo:eu-repo/semantics/publishedVersion


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