Welfare Effects of Entry Into Markets with Switching Costs
研究了当消费者转换产品有成本时，高效低成本企业进入市场可能反而降低社会福利，在线性模型中超过一半参数空间内进入减少福利。
In many markets, consumers have costs of switching between products that are functionally identical. This note shows that entry of efficient low-cost competitors into these markets may be socially detrimental. In a linear model, entry reduces social welfare (as conventionally defined) in more than half of the relevant parameter space. In a more general model, there is always a range of values of switching costs for which entry reduces welfare, even if the entrant's production costs are lower than the incumbent's.