Let's lock them in: Collusion under consumer switching costs

IF 16.4 1区 化学 Q1 CHEMISTRY, MULTIDISCIPLINARY Accounts of Chemical Research Pub Date : 2023-09-19 DOI:10.1016/j.ijindorg.2023.103018
Niklas Fourberg
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引用次数: 21

Abstract

Consumer switching costs reduce the price elasticity of existing customers while increasing competition for new ones, creating an “invest-and-harvest” incentive for firms. This paper examines the effect of this dual pricing incentive on firm behavior in a laboratory experiment both with and without switching costs and the ability to communicate. I find that switching costs reduce the price level for new consumers, while the price level for existing consumers is unaffected and the “harvesting” effect is comparatively muted. Markets with switching costs are more competitive and less tacitly collusive. Moreover, switching costs provide a focal point for price setting in the form of a minimum marginal cost mark-up, which is frequently chosen in tacit market sharing outcomes. The results have implications for antitrust policy.

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让我们锁定他们:消费者转换成本下的合谋
消费者转换成本降低了现有客户的价格弹性,同时增加了对新客户的竞争,为公司创造了“投资和收获”的激励。本文在实验室实验中检验了这种双重定价激励对企业行为的影响,包括有和没有转换成本和沟通能力。我发现,转换成本降低了新消费者的价格水平,而现有消费者的价格不受影响,“收割”效应相对较弱。有转换成本的市场更具竞争力,较少暗中串通。此外,转换成本以最低边际成本加成的形式为价格制定提供了一个焦点,这在隐性市场共享结果中经常被选择。研究结果对反垄断政策具有启示意义。
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来源期刊
Accounts of Chemical Research
Accounts of Chemical Research 化学-化学综合
CiteScore
31.40
自引率
1.10%
发文量
312
审稿时长
2 months
期刊介绍: Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
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