Arbeitspapier
Switching Beers? The Effects of Switching Costs on Prices and Profits in Competitive Markets
We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across customer income segments and beer brands. Our supply estimation results show that the low-quality firm experiences a higher competitive pressure on price since low-quality consumers are more price sensitive and switch more easily to the high-quality firm’s product than vice versa. The high-quality firm is better shielded from price competition, as its consumers are less likely to switch to the low-quality product.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 9065
- Klassifikation
-
Wirtschaft
Oligopoly and Other Imperfect Markets
Firm Performance: Size, Diversification, and Scope
Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Business Economics
Marketing
- Thema
-
consumer heterogeneity
differentiated products
dynamic oligopoly
dynamic pricing
loyalty
state dependence
switching costs
- Ereignis
-
Geistige Schöpfung
- (wer)
-
He, Xiaoyang
Siebert, Ralph
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- He, Xiaoyang
- Siebert, Ralph
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021
Ähnliche Objekte (12)
Heterogenous Switching Costs
Switching costs and financial stability
Estimating firms' bank-switching costs
Switching Costs in Medicare Advantage
Switching Costs in Frequently Repeated Games
Switching Costs in Infinitely Repeated Games
Neural correlates of affective task switching and asymmetric affective task switching costs
Enhancing market power by reducing switching costs
Switching costs, firm size, and market structure
Language-Switching Costs in Bilingual Mathematics Learning
Repetition costs in task switching are not equal to cue switching costs: evidence from a cue-independent context
Repetition costs in task switching are not equal to cue switching costs: evidence from a cue-independent context
Heterogenous Switching Costs
Switching costs and financial stability
Estimating firms' bank-switching costs
Switching Costs in Medicare Advantage
Switching Costs in Frequently Repeated Games
Switching Costs in Infinitely Repeated Games
Neural correlates of affective task switching and asymmetric affective task switching costs
Enhancing market power by reducing switching costs
Switching costs, firm size, and market structure
Language-Switching Costs in Bilingual Mathematics Learning
Repetition costs in task switching are not equal to cue switching costs: evidence from a cue-independent context
Repetition costs in task switching are not equal to cue switching costs: evidence from a cue-independent context
Heterogenous Switching Costs
Switching costs and financial stability
Estimating firms' bank-switching costs
Switching Costs in Medicare Advantage
Switching Costs in Frequently Repeated Games
Switching Costs in Infinitely Repeated Games
Neural correlates of affective task switching and asymmetric affective task switching costs
Enhancing market power by reducing switching costs
Switching costs, firm size, and market structure
Language-Switching Costs in Bilingual Mathematics Learning
Repetition costs in task switching are not equal to cue switching costs: evidence from a cue-independent context