Kim, Jeong-yoo; Park, Jihoon - 2018
will be higher. Second, it has the lock-in effect which makes price competition even less severe. Third, once a firm has … firm has an incentive to raise the price. Interestingly, the authors argue that the lock-in effect is not essential to the … honor their own gift cards, so that no lock-in effect exists. This is mainly because firms can still raise prices for the …