Markets with Consumer Switching Costs and Non-Linear Pricing.¤

  title={Markets with Consumer Switching Costs and Non-Linear Pricing.¤},
  author={Tommy Staahl Gabrielsen and Steinar Vagstad},
In a non-cooperative oligopoly model where ...rms use simple linear prices, Klemperer (1987) has shown that the existence of consumers’ switching costs may generate monopoly like prices, and thereby create substantial loss in welfare. We show that when allowing ...rms to use two-part tari¤s, social optimal prices are always set and the size and distribution of switching costs only a¤ect the distribution of surplus between ...rms and consumers. JEL classi...cation numbers: D44, D82, L10, L51 
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