Resumé
| Originalsprog | Engelsk |
|---|---|
| Publikationsdato | 2019 |
| Antal sider | 36 |
| Status | Udgivet - 2019 |
| Begivenhed | 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019 - Ciutadella of the Universitat Pompeu Fabra, Barcelona, Spanien Varighed: 30 aug. 2019 → 1 sep. 2019 Konferencens nummer: 46 https://www.barcelonagse.eu/earie2019 |
Konference
| Konference | 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019 |
|---|---|
| Nummer | 46 |
| Lokation | Ciutadella of the Universitat Pompeu Fabra |
| Land | Spanien |
| By | Barcelona |
| Periode | 30/08/2019 → 01/09/2019 |
| Internetadresse |
Citer dette
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Competition and Dynamic Pricing in Markets with Consumer Switching Costs. / Thiel, Jurre H.
2019. Afhandling præsenteret på 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019, Barcelona, Spanien.Publikation: Konferencebidrag › Paper › Forskning › peer review
TY - CONF
T1 - Competition and Dynamic Pricing in Markets with Consumer Switching Costs
AU - Thiel, Jurre H.
PY - 2019
Y1 - 2019
N2 - In markets with switching costs, firms increase their price as their market share grows. I study the effect of entry on these price dynamics in the Dutch mortgage market. Since en- try occurred in a subset of markets, I control for market-level shocks with a differences-in- differences strategy. Moreover, I exploit the multi-product nature of incumbents to control for unobserved firm-level differences. Consistent with a simple theoretical framework, banks with more locked-in customers decrease their interest rates less after entry. This can explain why policies that encourage competition often disappoint in markets with switching costs. I also discuss implications for competition policy.
AB - In markets with switching costs, firms increase their price as their market share grows. I study the effect of entry on these price dynamics in the Dutch mortgage market. Since en- try occurred in a subset of markets, I control for market-level shocks with a differences-in- differences strategy. Moreover, I exploit the multi-product nature of incumbents to control for unobserved firm-level differences. Consistent with a simple theoretical framework, banks with more locked-in customers decrease their interest rates less after entry. This can explain why policies that encourage competition often disappoint in markets with switching costs. I also discuss implications for competition policy.
M3 - Paper
ER -