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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- 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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- repec:tpr:qjecon:v:102:y:1987:i:2:p:375-94 is not listed on IDEAS
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