Competition When Consumers Have Switching Costs: An Overview.

Working paper

This paper surveys recent work on competition in markets in which consumers face costs to switching between competing firms' products, even when all firms' products are functionally identical. I address issues in macroeconomics, international trade and industrial organization: In a market with switching costs (or 'brand loyalty'), a firm's current market share is an important determinant of its future profitability. I examine how the firm's choice between setting a low price to capture market...

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Authors: Klemperer, P

• Publisher: CEPR
• Host title: C.E.P.R.Discussion Papers
• Series: C.E.P.R.Discussion Papers
• Volume: 704
• Publication date: 1992-01-01
• Paper number: 704
• Language: English