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Do switching costs make markets more or less competitive? The case of 800-number portability

RAND JOURNAL OF ECONOMICS, no. 1 (2007): 146-163

Cited by: 62|Views4
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Abstract

Do switching costs reduce or intensify price competition if firms charge the same price to existing and new consumers? I study 800-number portability to determine how switching costs affect price competition under a single price regime. AT&T and MCI reduced their toll-free services prices in response to portability, implying that reduced ...More

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