Consumer poaching, brand switching, and price transparency

Christian Schultz

doi:10.1016/j.econlet.2014.02.024

Consumer poaching, brand switching, and price transparency

Christian Schultz

1 Citationer (Scopus)

Abstract

This paper addresses price transparency on the consumer side in markets with behavioral price
discrimination which feature welfare reducing brand switching. When long-term contracts are not
available, an increase in transparency intensifies competition, lowers prices and profits, reduces brand
switching and benefits consumers and welfare. With long-term contracts, an increase in transparency
reduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise,
the results are the same as without long-term contracts.

Originalsprog	Engelsk
Tidsskrift	Economics Letters
Vol/bind	123
Sider (fra-til)	266-269
Antal sider	4
ISSN	0165-1765
DOI	https://doi.org/10.1016/j.econlet.2014.02.024
Status	Udgivet - jun. 2014

Adgang til dokumentet

10.1016/j.econlet.2014.02.024

Citationsformater

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title = "Consumer poaching, brand switching, and price transparency",

abstract = "This paper addresses price transparency on the consumer side in markets with behavioral pricediscrimination which feature welfare reducing brand switching. When long-term contracts are notavailable, an increase in transparency intensifies competition, lowers prices and profits, reduces brandswitching and benefits consumers and welfare. With long-term contracts, an increase in transparencyreduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise,the results are the same as without long-term contracts.",

author = "Christian Schultz",

note = "JEL classification: L13, L41",

year = "2014",

month = jun,

doi = "10.1016/j.econlet.2014.02.024",

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volume = "123",

pages = "266--269",

journal = "Economics Letters",

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AU - Schultz, Christian

N1 - JEL classification: L13, L41

PY - 2014/6

Y1 - 2014/6

N2 - This paper addresses price transparency on the consumer side in markets with behavioral pricediscrimination which feature welfare reducing brand switching. When long-term contracts are notavailable, an increase in transparency intensifies competition, lowers prices and profits, reduces brandswitching and benefits consumers and welfare. With long-term contracts, an increase in transparencyreduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise,the results are the same as without long-term contracts.

AB - This paper addresses price transparency on the consumer side in markets with behavioral pricediscrimination which feature welfare reducing brand switching. When long-term contracts are notavailable, an increase in transparency intensifies competition, lowers prices and profits, reduces brandswitching and benefits consumers and welfare. With long-term contracts, an increase in transparencyreduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise,the results are the same as without long-term contracts.

U2 - 10.1016/j.econlet.2014.02.024

DO - 10.1016/j.econlet.2014.02.024

M3 - Journal article

SN - 0165-1765

VL - 123

SP - 266

EP - 269

JO - Economics Letters

JF - Economics Letters

ER -