Do switching costs make markets less competitive?

Journal of Marketing Research

Volumn 46, Issue 4, 2009, Pages 435-445

  Dubé, Jean Pierre ^a   Hitsch, Günter J ^a   Rossi, Peter E ^a  

^a UNIVERSITY OF CHICAGO   (United States)

Author keywords

Brand loyalty; Competition; Dynamic oligopoly; Pricing; Switching costs

Indexed keywords

EID: 69549114378     PISSN: 00222437     EISSN: None     Source Type: Journal    
DOI: 10.1509/jmkr.46.4.435     Document Type: Article

References (25)

1. Allenby, G. and RE. Rossi (1999), "Marketing Models of Consumer Heterogeneity," Journal of Econometrics, 89 (1-2), 57-78.
2. Beggs, A. and P. Klemperer (1992), "Multi-Period Competition with Switching Costs," Econometrica, 60 (3), 651-666
3. Besanko, D., U. Doraszelski, Y. Kryukov, and M. Satterthwaite (2007), "Learning-by-Doing, Organizational Forgetting, and Industry Dynamics," working paper, Department of Economics, Harvard University.
4. Cabral, L.M.B. (2009), "Small Switching Costs Lead to Lower Prices," Journal of Marketing Research, 46 (August), 449-451
5. M. Villas-Boas (2005), "Bertrand Supertraps," Management Science, 51 (4), 599-613.
6. Caplin, Andrew and Barry Nalebuff (1991), "Aggregation and Imperfect Competition: On the Existence of Equilibrium," Econometrica, 59 (1), 25-59.
7. Che, Hai, K. Sudhir, and P.B. Seetharaman (2007), "Bounded Rationality in Pricing Under State-Dependent Demand: Do Firms Look Ahead, and if So, How Far?" Journal of Marketing Research, 44 (August), 449-451
8. Doganoglu, T. (2005), "Switching Costs, Experience Goods and Dynamic Price Competition," working paper, Department of Economics, University of Munich.
9. Doraszelski, U. and M. Satterthwaite (2005), "Foundations of Markov-Perfect Industry Dynamics: Existence, Purification, and Multiplicity," working paper, Department of Economics, Harvard University.
10. Dube´, J.P., G. Hitsch, and P.E. Rossi (2008), "State Dependence and Alternative Explanations for Consumer Inertia," working paper, Booth School of Business, University of Chicago.
11. M. Vitorino (2008), "Category Management with State-Dependent Utility," Marketing Science, 27 (3), 417-429
12. Erdem, T. (1996), "A Dynamic Analysis of Market Structure Based on Panel Data," Marketing Science, 15 (4), 359-378
13. Farrell, J. and P. Klemperer (2007), "Coordination and Lock-In: Competition with Switching Costs and Network Effects," in Handbook of Industrial Organization, Vol.3, M. Armstrong and R. Porter, eds. Amsterdam: North-Holland, 1967-2056.
14. C. Shapiro (1988), "Dynamic Competition with Switching Costs," RAND Journal of Economics, 19 (1), 123-137
15. Fudenberg, Drew and J. Miguel Villas-Boas (2006), "Behavior- Based Price Discrimination and Customer Recognition," in Handbook on Economics and Information Systems, T.J. Hendershott, ed. Amsterdam: Elsevier, 377-436.
16. Keane, M.P. (1997), "Modeling Heterogeneity and State Dependence in Consumer Choice Behavior," Journal of Business and Economic Statistics, 15 (10), 310-327
17. Klemperer, P. (1987), "Markets with Consumer Switching Costs," Quarterly Journal of Economics, 102 (2), 375-394
18. -(1995), "Competition When Consumers Have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade," Review of Economic Studies, 62 (4), 515-539
19. Padilla, A.J. (1995), "Revisiting Dynamic Duopoly with Consumer Switching Costs," Journal of Economic Theory, 67 (2), 520-530
20. Rossi, P.E., G.M. Allenby, and R. McCulloch (2005), Bayesian Statistics and Marketing. New York: John Wiley & Sons.
21. Roy, R., P.K. Chintagunta, and S. Haldar (1996), "A Framework for Investigating Habits, 'The Hand of the Past,' and Heterogeneity in Dynamic Brand Choice," Marketing Science, 15 (3), 280-299
22. Seetharaman, P.B. (2004), "Modeling Multiple Sources of State Dependence in Random Utility Models: A Distributed Lag Approach," Marketing Science, 23 (2), 263-271
23. Andrew Ainslie, and Pradeep K. Chintagunta (1999), "Investigating Household State Dependence Effects Across Categories," Journal of Marketing Research, 36 (November), 488-500.
24. Shum, M. (2004), "Does Advertising Overcome Brand Loyalty? Evidence from the Breakfast-Cereals Market," Journal of Economics and Management Strategy, 13 (2), 241-272
25. Viard, Brian (2007), "Do Switching Costs Make Markets More or Less Competitive? The Case of 800-Number Portability," RAND Journal of Economics, 38 (1), 146-163