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The war of attrition under uncertainty : theory and robust testable implications

Décamps, Jean-Paul; Gensbittel, Fabien; Mariotti, Thomas - 2023

We study a generic model of the war of attrition with symmetric information and stochastic payoffs that depend on a homogeneous linear diffusion. We first show that a player's mixed Markov strategy can be represented by an intensity measure over the state space together with a subset of the...

Persistent link: https://www.econbiz.de/10014443822

Transition from copper to fiber broadband : the role of connection speed and switching costs

Grzybowski, Lukasz; Hasbi, Maude; Liang, Julienne - 2018

We estimated a mixed logit model using data on the broadband technologies chosen by 94,388 subscribers of a single European broadband operator on a monthly basis between January and December 2014. We found that consumers have similar valuation of DSL connection speeds in the range between 1 and...

Persistent link: https://www.econbiz.de/10011954456

Estimating consumer inertia in repeated choices of smartphones

Grzybowski, Lukasz; Nicolle, Ambre - 2018

In this paper, we use a unique dataset on switching between mobile handsets in a sample of about 8,623 subscribers using tariffs without handset subsidies from a single mobile operator on a monthly basis between July 2011 and December 2014. We estimate a discrete choice model in which we account...

Persistent link: https://www.econbiz.de/10011955550

Consumer loss aversion and scale-dependent psychological switching costs

Karle, Heiko; Schumacher, Heiner; Vølund, Rune - 2021

We consider the Salop (1979) model of product differentiation and assume that consumers are uncertain about the qualities and prices of firms’ products. They can inspect all products at zero cost. A share of consumers is expectation-based loss averse. For these consumers, a purchase plan,...

Persistent link: https://www.econbiz.de/10012624849

Switching beers? : the effects of switching costs on prices and profits in competitive markets

He, Xiaoyang; Siebert, Ralph - 2021

We consider a dynamic oligopoly on the beer market and study the differential effects of switching costs on product prices, market shares, and profits. Our demand estimation results show large differences in brand loyalty, and switching costs across customer income segments and beer brands. Our...

Persistent link: https://www.econbiz.de/10012510220

Lock-in effects in online labor markets

Ciotti, Fabrizio; Hornuf, Lars; Stenzhorn, Eliza - 2021

This article reports on an investigation of the role of lock-in exploitation and the impact of reputation portability on workers’ switching behaviors in online labor markets. Online platforms using reputation mechanisms typically prevent users from transferring their ratings to other...

Persistent link: https://www.econbiz.de/10012652857

Striking evidence : the impact of railway strikes on competition from intercity bus services in Germany

Beestermöller, Matthias Gerhard; Jessen-Thiesen, Levke; … - 2023

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...

Persistent link: https://www.econbiz.de/10014292134

Imitation : theory and experimental evidence

Apesteguia, Jose; Huck, Steffen; Oechssler, Joerg - 2003

We introduce a generalized theoretical approach to study imitation models and subject themodels to rigorous experimental testing. In our theoretical analysis we find that the differentpredictions of previous imitation models are due to different informational assumptions, notto different...

Persistent link: https://www.econbiz.de/10011509505

Long-run trends and cycles in US house prices

Caporale, Guglielmo Maria; Gil-Alaña, Luis A. - 2023

integration of the cyclical structure implies that cycles have a periodicity of about 8 years, but it is almost insignificant in …

Persistent link: https://www.econbiz.de/10014427184

Stabilizing competitive cycles with distortionary taxation

Koskela, Erkki; Puhakka, Mikko - 2003

taxation on cycles and local stability of equilibria. We show that under proportional taxation there is a critical tax rate … above which cycles will vanish, while in the case of linearly progressive taxation there is a critical level of exemption … below which cycles will vanish as well. Hence, a sufficiently high tax rate and a low tax progression eliminate cycles. If …

Persistent link: https://www.econbiz.de/10011507910