Duopolio con costos de cambio y de retenciónEfectos sobre el excedente del consumidor y el bienestar social

  1. Carlos Pateiro-Rodríguez 1
  2. A. Javier Prado-Domínguez 2
  3. Jesús M. García-Iglesias 3
  4. José M. Barreiro-Viñán 4
  1. 1 Universidad de La Coruña Facultad de Economía y Empresa Departamento de Análisis Económico y Administración de Empresas
  2. 2 Universidad de La Coruña Facultad de Economía Departamento de Economía Aplicada I
  3. 3 Universidad de Extremadura Facultad de Empresariales y Turismo Departamento de Economía
  4. 4 Universidad de La Coruña Facultad de Economía Departamento de Análisis Económico y Administración de Empresas
Show affiliations +
Journal:
Investigación económica

ISSN: 0185-1667

Year of publication: 2015

Volume: 74

Issue: 292

Pages: 159-184

Type: Article

DOI: 10.1016/J.INVECO.2015.08.006 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Investigación económica

Sustainable development goals

Abstract

In a context of a market with free entry, we analyse the changes in consumer surplus, social welfare and the other equilibrium conditions when a competitor enters a monopolistic market where there is an established firm. We study the equilibrium in a duopolistic model by assuming that if the potential entrant decides to enter, there then follows a single period of Cournot-Nash quantity competition. We add retention costs in Klemperer model (1988) and, under certain assumptions about who bears these costs, we analyse and compare the results. Assume linear demand and that both firms have constant marginal costs. Work results are important for the analysis of the implications for welfare of regulatory policies. Finally, our work includes a simulation to test the theoretic model and to validate the relevant results in terms of social welfare, consumer surplus, profits and quantities in monopoly, duopoly with switching costs and duopoly with switching and retention costs.

Bibliographic References

  • Anderson, P.. (2006). The Liberalisation of Postal Services in Sweden -Goals, results and lessons for other countries. Department of Management and Economics, Linköping University.
  • Anderson, E.,Kumar, N.K,Rajiv, S.. (2004). A Comment on: "Revisiting dynamic duopoly with consumer switching costs". Journal of Economic Theory. 116. 177-186
  • Armstrong, M.S.,Sappington, D.E.. (2006). Regulation, Competition and Liberalization. Journal of Economic Literature. 326-366
  • Beggs, A.,Klemperer, P.. (1992). Multiperiod Competition and Switching Costs. Econometrica. 60. 651-666
  • Biglaiser, G.,Crémer, J.,Dobos, G. (2010). The Value Of Switching Costs. Institut d'Economie Industrielle (IDEI). Toulouse.
  • Burnham, TA.,Frels, J.K,Mahajan, V.. (2003). Consumer Switching Costs: A typology, antecedents, and consequences. Journal of the Academy of Marketing Science. 31. 109-126
  • Che, H.,Sudhir, K.,Seetharaman, P.B.. (2007). Bounded Rationality in Pricing under State Dependent Demand: Do firms look ahead?. Journal of Marketing Research. 44. 434-449
  • Cohen, R.,Jonsson, P.,Robinson, M.,Selander, S.,Waller, J.,Xenakis, S.. (2007). 10th Königsmnter Postal Seminar on "Postal Market betwen Monopoly and Competition". Wissenschaftliches Institut für Infrastuktur und Kommunikationsdienste. HirschburgKönigswinter.
  • Crew, MA.,Kleindorfer, PR.. (2009). Progress in the Competitive Agenda in the Postal and Delivery Sector. Edward Elgar Publishing Limited. Northampton^eMA MA.
  • Crew, MA.,Kleindorfer, PR.. (2012). Multi-modal Competition and the Future of Mail. Edward Elgar Publishing Limited. Northampton^eMA MA.
  • Danner, C.R.. (1999). Emerging Competition in Postal and Delivery Services. Kluwer Academic Publishers. Norwell^eMA MA.
  • Dieke, A.,Schólermann, S.. (2008). Competition and Regulation in the Postal and Delivery Sector. Edward Elgar. Cheltenham^eMANorthhampton MA.
  • Directiva 2008/6/ CE del Parlamento Europeo y del Consejo, de 20 de febrero de 2008, por la que se modifica la Directiva 97/67/ CE en relación con la plena realización del mercado interior de servidos postales comunitarios.
  • Dubé, J.P,Hitsch, G.H.,Rossi, PE.. (2009). Do Switching Costs Make Markets Less Competitive?. Journal of Marketing Research. 46. 435-445
  • Eccles, R.. (2010). Heightening Competition in the Postal and Delivery Sector. Edward Elgar. Northampton^eMA MA.
  • Eccles, R.. (2012). Multi-modal Competition and the Future of Mail. Edward Elgar Publishing Limited. Northampton^eMA MA.
  • Farrell, J.,Shapiro, C. (1988). Dynamic Competition with Switching Costs. The RAND Journal of Economics. 19. 123-137
  • Foster, M.,Mcgarry, T.,Yu, J.. (2003). Number Portability in the Global Switched Telephone Network (gstn): An overview. The Internet Society.
  • Franx, W. (2000). The Telecommunication Handbook. CRC Press LLC. Boca Raton^eFL FL.
  • Fratini, A.,Roy, B.,Vantomme, J.. (2010). Heightening Competition in the Postal and Delivery Sector. Edward Elgar. Northampton^eMA MA.
  • Hartmann, WR.,Viard, V.B.. (2008). Do Frequency Reward Programs Create Switching Costs? A dynamic structural analysis of demand in a reward program. Quantitative Marketing and Economics. 6. 109-137
  • Hauser, J.,Shugan, S.. (1983). Defensive Marketing Strategies. Marketing Science. 2. 319-360
  • Heide, J.,Weiss, A.. (1995). Vendor Considerations and Switching Behaviour for Buyers in high Technology Markets. Journal of Marketing. 59. 30-43
  • Jaag, C,Dietl, FL,Trinkner, U.,Fürst, O.. (2012). Multi-modal Competition and the Future of Mail. Edward Elgar Publishing Limited. Northampton^eMA MA.
  • Jones, M.A.,Mothersbaugh, DL.,Beatty, S.E.. (2000). Switching Barriers and Repurchase Intentions in Services. Journal of Retailing. 76. 259-274
  • Jones, M.A.,Reynolds, K.E.,Mothersbaugh, DL.,Beatty, S.E.. (2002). Why Customers Stay: Measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes. Journal of Business Research. 55. 441-450
  • Jones, M.A.,Mothersbaugh, DL,Beatty, S.E.. (2007). The Positive and Negative Effects of Switching Costs on Relational Outcomes. Journal of Service Research. 9. 335-355
  • Keiningham, T,Vavra, T.G.,Aksoy, L.,Wallard, H.. (2005). Loyalty Myths: Hyped strategies that will put you out of business and proven tactics that really work. John Wiley & Sons. New Jersey.
  • Klemperer, P.. (1987). Markets with Consumer Switching Costs. Quarterly Journal of Economics. 102. 375-394
  • Klemperer, P.. (1987). Entry Deterrence in Markets with Switching Costs.
  • Klemperer, P.. (1988). Welfare Effects of Entry into Markets with Switching Costs. The Journal of industrial economics. 159-165
  • Klemperer, P.. (1995). Competition when Consumers have Switching Costs: An overview with applications to industrial organization, macroeconomics, and international trade. Review of Economic Studies. 62. 515-539
  • Markova, E.. (2009). Liberalisation and Regulation of the Telecommunications Sector in Transition Countries. The case of Rusia. Physica-Verlag. Heidelberg.
  • Moriarty, R.,Smith, P.. (2005). Regulatory and Economic Challenges in the Postal and Delivery Sector. Kluwer Academic. Boston^eMA MA.
  • Padilla, A.J.. (1995). Revisiting Dynamic Duopoly with Consumer Switching Costs. Journal of Economic Theory. 67. 520-530
  • Park, M.. (2010). The Economic Impact of Wireless Number Portability. Haas School of Business, University of California. Berkeley^eCA CA.
  • Pateiro Rodríguez, C,Barreiro Viñán, J.M.,García Iglesias, J.M.. (2013). Anales de Economía Aplicada 2013. Delta PublicacionesAsociación Internacional de Economía Aplicada.
  • Patterson, PG,Smith, T.. (2003). A Cross-cultural Study of Witching Barriers and Propensity to Stay with Service Providers. Journal of Retailing. 79. 107-120
  • Ranaweera, C.,Prabhu, J.. (2003). The Influence of Satisfaction, Trust and Switching Barriers on Customer Retention in a Continuous Purchasing Setting. International Journal of Service Industry Management. 14. 374-395
  • Roos, I.,Edvardsson, B.,Gustafsson, A.. (2004). Customer Switching Patterns in Competitive and Noncompetitive Service Industries. Journal of Service Research. 6. 256-271
  • Seetharaman, P.B.. (2003). Probabilistic versus Random-utility Models of State Dependence: An empirical comparison. International Journal of Research in Marketing. 20. 87-96
  • Sharma, N.,Patterson, PG. (2000). Switching Costs, Alternative Attractiveness and Experience as Moderators of Relationship Commitment in Professional, Consumer Services. International Journal of Service Industry Management. 11. 470-490
  • Shi, M.J.,Chiang, J.,Rhee, B.D. (2006). Price Competition with Reduced Consumer Switching Costs: The case of wireless number portability' in the cellular phone industry. Management Sdence. 52. 27-68
  • Shy, Q. (2002). A Quick and Easy Method for Estimating Switching Costs. International Journal of Industrial Organisation. 20. 71-87
  • Stango, W. (2002). Pricing with Consumer Switching Costs. Evidence from the credit card market. Journal of Industrial Economics. 50. 475-492
  • Strombom, B.A.,Buchmueller, T.C.,Feldstein, P.J.. (2002). Switching Costs, Price Sensitivity and Health Plan Choice. Journal of Health Economics. 21. 89-116
  • Viard, B.. (2007). Do Switching Costs Make Markets more or Less Competitive? The case of 800-number portability. RAND Journal of Economics. 38. 146-163
  • Villas-Boas, J.M.. (2006). Dynamic Competition with Experience Goods. Journal of Economics and Management Strategy. 15. 37-66
  • Villas-Boas, J.M.. (2011). Notes on Switching Costs and Dynamic Competition. University of California. Berkeley^eCA CA.
  • White, L.,Yanamandram, V. (2007). A Model of Customer Retention of Dissatisfied Business Services Customers. Managing Service Quality. 17. 298-316
  • Wojtek, R.,Zauner, M.. (2012). Multi-modal Competition and the Future of Mail. Edward Elgar Publishing Limited. Northampton^eMA MA.
Data source: Dialnet