Axiom 9 - Switching Costs and Lock-in
Small consumer switching costs can constitute large barriers to entry, especially for mass-market products (Shapiro and Varian, 109). The total cost of switching = costs the customer bears + costs the new supplier bears (Shapiro and Varian, 112). When the costs of switching from one brand of technology to another are substantial, users face lock-in (Shapiro and Varian, 112).
|
Submissions will be posted on this website within 24 hours.