Enchancing market power by reducing switching costs
A proportional decrease in switching costs increases competition and social welfare. However, a lump sum decrease in switching costs softens competition and does not invariably increase social welfare.
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- Biglaiser, Gary & Crémer, Jacques & Dobos, Gergely, 2013.
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- Paul Klemperer & Joseph Farrell, 2006. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Economics Series Working Papers 2006-W07, University of Oxford, Department of Economics.
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- Erland Nier & Celine Gondat-Larralde, 2004. "The Microeconomics Of Retail Banking - An Empirical Analysis Of The UK Market For Personal Current Accounts," Royal Economic Society Annual Conference 2004 110, Royal Economic Society.
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