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Author:Garcia Marinoso, B.
Title:Technological incompatibility, endogenous switching costs and lock-in
Journal:Journal of Industrial Economics
2001 : SEP, VOL. 49:3, p. 281-298
Index terms:COMPETITION
CONSUMER BEHAVIOUR
SWITCHING COSTS
TECHNOLOGY
Language:eng
Abstract:Systems are goods comprising of durables that are sequentially updated with complements. With sequential purchases, if suppliers produce incompatible brands, consumers who upgrade systems with complements of a different brand must replace the durables they own. Thus, the price of these durables is an endogenous switching cost. The paper deals with the concern that firms may use incompatibility to create consumer's switching costs to reduce competition in aftermarkets.
SCIMA record nr: 229009
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