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Protecting sticky consumers in essential markets

Author

Listed:
  • Walter Beckert

    (Institute for Fiscal Studies and Birkbeck, University of London)

  • Paolo Siciliani

    (Institute for Fiscal Studies)

Abstract

This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established ?rms are challenged by new entrants. We identify circumstances under which such interventions can be counterproductive, both with regard to the stated consumer protection objective and the complementary aim to promote competition.

Suggested Citation

  • Walter Beckert & Paolo Siciliani, 2021. "Protecting sticky consumers in essential markets," IFS Working Papers W21/10, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:21/10
    as

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    References listed on IDEAS

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