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WP202110-Protecting-sticky-consumers-in-essential-markets.pdf
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This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established firms are challenged by new entrants. We identify circumstances under which such interventions can be counterproductive, both with regard to the stated consumer protection objective and the complementary aim to promote competition.
Authors
Research Associate Birkbeck, University of London
Walter is a Research Associate at the IFS, a Reader in Economics at Birkbeck, University of London and holds a position in the Academic Panel at CMA.
Paolo Siciliani
Working Paper details
- DOI
- 10.1920/wp.ifs.2021.1021
- Publisher
- Institute for Fiscal Studies
Suggested citation
Beckert, W and Siciliani, P. (2021). Protecting sticky consumers in essential markets. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/protecting-sticky-consumers-essential-markets (accessed: 29 March 2024).
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