Farrell, Joseph; Klemperer, Paul - In: Handbook of industrial organization : volume 3, (pp. 1967-2072). 2007
Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in efficiency, and gives vendors lucrative ex...
