Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/76157 
Erscheinungsjahr: 
2005
Schriftenreihe/Nr.: 
Working Paper No. 0508
Verlag: 
University of Zurich, Socioeconomic Institute, Zurich
Zusammenfassung: 
In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for these pricing patterns. In this model, consumers face costs when switching from one supplier to another and consumers change locations with a given positive probability. Consequently, large frms or chain stores insure consumers against this switching cost. The model predicts that chain stores and local stores coexist in equilibrium and that chain stores charge higher prices and yet attract more consumers than local stores. As consumer mobility increases, the profits of both local stores and chain stores increase, but the chain stores' profts increase at a faster rate.
Schlagwörter: 
firm size
switching costs
consumer mobility
market structure
JEL: 
D43
L15
Dokumentart: 
Working Paper

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