Supplier Surfing: Competition and Consumer Behavior in Subscription Markets Export

@article{Taylor_2003_SupplierSurfing, abstract = {I explore the practice of offering subscribers enticements to switch suppliers. This type of competition is natural in subscription markets for homogeneous goods and services. Efficiency is impaired because subscribers are induced to expend resources changing suppliers. Subscription markets are fully competitive only when three or more firms serve the industry. In this case, the price offered to switchers is below cost, while nonswitchers pay a premium. Each firm earns rent on its customer base, but zero expected profit on each new subscriber it attracts. When firms can track switching behavior, consumers may change suppliers in order to establish reputations.}, author = {Taylor, Curtis R.}, citeulike-article-id = {2975644}, citeulike-linkout-0 = {http://www.jstor.org/sici?sici=0741-6261(200322)34%3A2%3C223%3ASSCACB%3E2.0.CO%3B2-E}, journal = {RAND Journal of Economics}, keywords = {bertrand, competition, demand, io, market, monopoly, oligopoly, paper\_02\_search\_engine\_competition, price\_discrimination, switching\_costs}, number = {2}, pages = {223--246}, posted-at = {2008-07-09 12:00:38}, priority = {5}, title = {Supplier Surfing: Competition and Consumer Behavior in Subscription Markets}, url = {http://www.jstor.org/sici?sici=0741-6261(200322)34%3A2%3C223%3ASSCACB%3E2.0.CO%3B2-E}, volume = {34}, year = {2003} }

TY - JOUR ID - Taylor_2003_SupplierSurfing L3 - citeulike-article-id:2975644 N2 - I explore the practice of offering subscribers enticements to switch suppliers. This type of competition is natural in subscription markets for homogeneous goods and services. Efficiency is impaired because subscribers are induced to expend resources changing suppliers. Subscription markets are fully competitive only when three or more firms serve the industry. In this case, the price offered to switchers is below cost, while nonswitchers pay a premium. Each firm earns rent on its customer base, but zero expected profit on each new subscriber it attracts. When firms can track switching behavior, consumers may change suppliers in order to establish reputations. IS - 2 JF - RAND Journal of Economics EP - 246 TI - Supplier Surfing: Competition and Consumer Behavior in Subscription Markets VL - 34 SP - 223 KW - bertrand KW - competition KW - demand KW - io KW - market KW - monopoly KW - oligopoly KW - paper_02_search_engine_competition KW - price_discrimination KW - switching_costs AU - Taylor, Curtis PY - 2003/// UR - http://www.jstor.org/sici?sici=0741-6261(200322)34%3A2%3C223%3ASSCACB%3E2.0.CO%3B2-E ER -