Switching Costs

Network Effects and Switching Costs in the US Wireless Industry

I estimate a model of dynamic consumer behavior to disentangle switching costs and network effects in the US wireless industry. A detailed panel on market shares and churn rates, disaggregated by demographic consumer types and local markets, allows …

Alert the Inert! Switching Costs and Limited Awareness in Retail Electricity Markets

We quantify how switching costs and limited awareness affect consumer inertia in liberalized retail electricity markets by developing and estimating a structural demand model using a novel data set on electricity contract choices in Belgium. Our data …