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Transaction, Search and Switching Costs: An Expository Essay

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  • Singh, Nirvikar

Abstract

This essay provides an elementary, unified introduction to the impacts of transaction, search and switching costs on resource allocation in competitive markets. The emphasis is on incorporating these phenomena into models of price-taking behavior, rather than the more usual treatments with imperfect competition.

Suggested Citation

  • Singh, Nirvikar, 2010. "Transaction, Search and Switching Costs: An Expository Essay," MPRA Paper 21558, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21558
    as

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    File URL: https://mpra.ub.uni-muenchen.de/21558/1/MPRA_paper_21558.pdf
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    References listed on IDEAS

    as
    1. Paul Klemperer, 1995. "Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 515-539.
    2. Singh, Nirvikar, 2010. "Uncertainty and Information: An Expository Essay," MPRA Paper 21556, University Library of Munich, Germany.
    3. Nirvikar Singh, 2011. "Market Institutions: An Expository Essay," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(1 (March)), pages 34-51.
    4. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
    5. R. Manning & P. B. Morgan, 1982. "Search and Consumer Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 203-216.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    transaction costs; search costs; switching costs; competitive markets; price-taking;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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