Competition and Dynamic Pricing in Markets with Consumer Switching Costs

Publikation: KonferencebidragPaperForskningpeer review

Resumé

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.
OriginalsprogEngelsk
Publikationsdato2019
Antal sider36
StatusUdgivet - 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. 20191 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
Nummer46
LokationCiutadella of the Universitat Pompeu Fabra
LandSpanien
ByBarcelona
Periode30/08/201901/09/2019
Internetadresse

Citer dette

Thiel, J. H. (2019). Competition and Dynamic Pricing in Markets with Consumer Switching Costs. Afhandling præsenteret på 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019, Barcelona, Spanien.
Thiel, Jurre H. / Competition and Dynamic Pricing in Markets with Consumer Switching Costs. Afhandling præsenteret på 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019, Barcelona, Spanien.36 s.
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Thiel, JH 2019, 'Competition and Dynamic Pricing in Markets with Consumer Switching Costs' Paper fremlagt ved 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019, Barcelona, Spanien, 30/08/2019 - 01/09/2019, .

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: KonferencebidragPaperForskningpeer review

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Thiel JH. Competition and Dynamic Pricing in Markets with Consumer Switching Costs. 2019. Afhandling præsenteret på 46th Annual Conference of the European Association for Research in Industrial Economics. EARIE 2019, Barcelona, Spanien.