We consider a retailer selling new products with a returns policy. After consumers purchase products and find them undesirable, they can either return the products to the retailer or resell them individually. Both the retailer and consumers incur transaction costs in resale. Anticipating that...

Customer switching costs are an important factor in account-based services such as telecommunications, financial, insurance and brokerage services. In these businesses, existing customers incur significant costs if they switch to another provider. Such costs include physical configuration and...