Second-period pricing in a duopoly with switching costs : the effect of size and composition of customer bases

dc.contributor.author	Gabrielsen, Tommy Staahl
dc.contributor.author	Vagstad, Steinar
dc.date.accessioned	2006-10-09T13:02:16Z
dc.date.available	2006-10-09T13:02:16Z
dc.date.issued	2001-04
dc.identifier.issn	0803-4028
dc.identifier.uri	http://hdl.handle.net/11250/166034
dc.description.abstract	Switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. It is also well known that asymmetric size of customer bases makes monopoly pricing more difficult. Adding consumer heterogeneity to the model we demonstrate that also composition of each firm's customer base affects pricing, and this composition may aggravate or ease the incentives to break out of the monoply pricing equilibrium.	en
dc.format.extent	2379381 bytes
dc.format.mimetype	application/pdf
dc.language.iso	eng	en
dc.publisher	SNF	en
dc.relation.ispartofseries	Working Paper	en
dc.relation.ispartofseries	2001:09	en
dc.subject	switching costs	en
dc.subject	consumer heterogeneity	en
dc.subject	duopoly	en
dc.subject	price discrimination	en
dc.title	Second-period pricing in a duopoly with switching costs : the effect of size and composition of customer bases	en
dc.type	Working paper	en