Since 2014
Can Switching Costs Reduce Prices?
Brazilian Review of Econometrics
View Archive Info| Field | Value | |
| Title |
Can Switching Costs Reduce Prices?
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| Creator |
Castilho, Rafael
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| Subject |
Demand and supply, discrete choice, switching cost
C35, L13 |
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| Description |
The 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.
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| Publisher |
Sociedade Brasileira de Econometria
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| Contributor |
CAPES, CNPq
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| Date |
2018-05-25
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/65890
10.12660/bre.v38n12018.65890 |
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| Source |
Brazilian Review of Econometrics; Vol 38, No 1 (2018); 175-195
Brazilian Review of Econometrics; Vol 38, No 1 (2018); 175-195 1980-2447 |
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| Language |
eng
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| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/65890/71715
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| Rights |
Copyright (c) 2018 Brazilian Review of Econometrics
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