Guney, Begum; Richter, Michael - In: Theoretical Economics 17 (2022) 2, pp. 617-650
We introduce a game-theoretic model with switching costs and endogenous references. An agent endogenizes his reference … strategy and then, taking switching costs into account, he selects a strategy from which there is no profitable deviation. We …): switching costs for firms may benefit consumers. Finally, we compare our model with others, especially K\"{o}szegi and Rabin …