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New: Do Switching Costs Make Markets Less Competitive?Date Posted: Jan 19, 2009 The conventional wisdom in economic theory holds that switching costs make markets less competitive. We find that steady-state equilibrium prices may fall as switching costs are introduced into a simple model of dynamic price competition that allows for differentiated products and imperfect lock-in.
Contrary to recent claims that the recession has sparked a sharp increase in Private Label demand, we find a long-term trend toward increasing acceptance of PL products that predates the Great Recession.
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The empirical analysis is based on a detailed record of the site users' attributes and their partner search, which allows us to estimate a rich preference specification that takes into account a large number of partner characteristics. An Empirical Model of Advertising Dynamics Date Posted: Jan 31, 2005 We develop a model of dynamic advertising and apply it to the problem of optimal advertising scheduling through time.
In many industries we observe advertising pulsing, whereby firms systematically switch advertising on and off at a high-frequency.
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He is the recipient of two Kilts Center Fellowships, a True North Communications Inc.