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Switching Costs or Search Costs?

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Author Info

  • Moshkin, N.
  • Shachar, R.
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    Abstract

    One of the most significant and robust characteristics of decision making is persistence. An example of this is brand loyalty -- the repeat purchase of new products of the same brand. This paper attempts to show that previous explanations of this phenomenon (switching costs, habit and unobserved heterogeneity) are incomplete, and presents another explanation, namely that individuals possess asymmetric information about their alternatives and are faced with search costs.

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    Bibliographic Info

    Paper provided by Tel Aviv in its series Papers with number 3-2000.

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    Length: 37 pages
    Date of creation: 2000
    Date of revision:
    Handle: RePEc:fth:teavfo:3-2000

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    Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
    Phone: 972-3-640-9255
    Fax: 972-3-640-5815
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    Web page: http://econ.tau.ac.il/research/foerder.asp
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    Related research

    Keywords: ASYMETRIC INFORMATION ; COSTS ; ECONOMIC MODELS ; CONSUMPTION ; BEHAVIOUR;

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    Cited by:
    1. Waterson, Michael, 2001. "The role of consumers in competition and competition policy," The Warwick Economics Research Paper Series (TWERPS) 607, University of Warwick, Department of Economics.

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