This paper investigates the link between bank-firm lending relationships and monetary policy pass-through, focusing on episodes of low interest rates. Using administrative tax and bank supervisory data ranging from 1997 to 2019, we track the entirety of bank-firm relationships in Norway. Our...

Whether and how workers search on the job depends on their beliefs about pay and working conditions in other firms. Yet little is known about workers' knowledge of outside pay. We use a large-scale survey of full-time German workers, linked to their Social Security records, to elicit pay...

This paper examines the effects of the introduction of mobile number portability (MNP) using data from Uruguay. MNP allows customers to switch mobile providers while retaining their phone number, thereby reducing switching costs and potentially enhancing competition. Our analysis reveals that...

Customers who have financial products (e.g., bank accounts, loans, credit cards and mortgages) are unlikely to change to another provider or change the terms of the product within the same provider (i.e., to "switch"). Significant monetary gains can be made by switching, but switching rates tend...

In this study, we explore the causes and performance outcomes of switching costs in the context of new product development (NPD) from both the supplier and customer perspectives, and discuss the role that switching costs play as moderators and mediators in the relationship between social capital...

Purpose - Switching behavior is predominantly seen in the consumer buying behavior of the mobile industry. This research aims to identify the factors influencing consumers to switch from their present mobile service provider. The consumer of the mobile industry operates in a dynamic and...

We analyze the effects of bailout policies on borrower surplus in a two-period Hotelling model of competition with switching costs and poaching. Before the second period of competition, banks may sometimes fail or face capacity constraints because of random shocks and uncertain bailouts. If...

The present research investigates how consumers engage with the Irish financial retail market when choosing and switching financial products. Data were gathered from a nationally representative sample of 2,903 individuals who are involved in their household financial decisions. The study used...

Failure to switch service provider is viewed as leaving money on the table. While psychological hassle and switching costs are often invoked to explain the observed inertia, there is little empirical research that directly measures barriers to switching in retail finance markets. This study uses...

This study theoretically and empirically examines the switching cost effect of long-term loans on selling non-interest products based on the theoretical framework suggested by Kim et al. (2003) and its extensions in the literature. The theoretical findings show that banks lock customers in...

Technology has changed organizational landscape due to how information is distributed and to whom the information is distributed to, the speed of access to information, and the choice of options for customers (Abrams, 2016). Since new technologies are evolving, different ways of marketing,...

This paper investigates the impact of the largest rail strikes in German history on intercity buses - a then newly liberalised market. Using unique booking data of bus services, we exploit variation in rail service cancellations across routes to show that the disruption in rail transport...

This paper investigates the impact of the largest rail strikes in German history on intercity buses – a then newly liberalised market. Using unique booking data of bus services, we exploit variation in rail service cancellations across routes to show that the disruption in rail transport...

The past few decades have witnessed a slowdown in productivity growth in many advanced economies, including Finland. Against this backdrop, this study investigates product switching in Finnish manufacturing firms during the period of 2009-2019. The findings indicate a growing trend towards...

Technology has changed organizational landscape due to how information is distributed and to whom the information is distributed to, the speed of access to information, and the choice of options for customers (Abrams, 2016). Since new technologies are evolving, different ways of marketing,...

Residential electricity markets in European countries are still characterized by low consumer engagement, especially where regulated and liberalized markets coexist. Using an original dataset on 2015-2018 prices for the Italian electricity market, augmented with the number of residential...

This study theoretically and empirically examines the switching cost effect of long-term loans on sellingnon-interest products based on the theoretical framework suggested by Kim et al. (2003) and its extensionsin the literature. The theoretical findings show that banks lock customers in longer...

This paper studies dynamic pricing and switching cost game under discrete mixed multinomial logit (MMNL) demand. Competing firms can dynamically change prices and redesign their products to in- crease or decrease switching costs in each period to influence the repeat consumers’ purchase...

Whether and how workers search on the job depends on their beliefs about pay and working conditions in other firms. Yet little is known about workers' knowledge of outside pay. We use a large-scale survey of full-time German workers, linked to their Social Security records, to elicit pay...

This study provides novel evidence on the magnitude of switching costs in auditing. We use a discrete choice approach to infer switching costs from clients' auditor choices. The demand estimation reveals that switching costs matter and that they differ by the direction with switching from...

We present novel evidence from a large panel of UK consumers who receive personalized reminders from a specialist price-comparison website about the precise amount they could save by switching to their best-suited alternative mobile telephony plan. We document three phenomena. First, even...

Primary care physicians have a central, coordination role in medicine, yet little is known about their impacts on healthcare utilization. I study the short-run and long-run effects of switching to different primary care physicians on utilization in terms of spending among Medicare patients over...

While majority of earlier studies have examined service quality,student satisfaction, and university image as determinants ofstudent loyalty, university switching costs have largely beenignored. This study includes university switching costs withperceived service quality (perceived academic...

Using administrative data on deposits and loans of every Norwegian with every Norwegian bank, we show that an existing deposit account makes a household more likely to hold deposits at the same bank later despite better alternatives and more likely to borrow there. Consistent with this, banks...

In a highly saturated market, some firms (e.g., Apple and Samsung) extend the scope of their trade-in services from the same brand (within-brand trade-ins) to any brand (cross-brand trade-ins). Cross-brand trade-ins provide additional trade-in rebates for consumers who possess a rival’s old...

Across many industries, firms employ a conversion funnel business model to attract customers with basic and affordable products, generate lock-in, and then sell them more advanced and expensive products. We argue that this business model, coupled with high customer switching costs, results in a...

We investigate the implications of a personal health record (PHR) platform on the adoption and sharing of electronic health records (EHR). Through our analysis, we find evidence that health care providers may not have an incentive to share patients’ records electronically even though EHR...

The diversion ratio is a key input to indicators of merger harm like upward pricing pressure. Measuring the diversion ratio, however, is challenging in the presence of consumer switching costs. We propose an identification strategy for diversion that relies on win/loss data from the two merging...