Compatibility Choices, Switching Costs, and Data Portability

• 成果类型: Article
• 署名作者: Jeon, Doh-Shin; Menicucci, Domenico; Nasr, Nikrooz
• 署名单位: Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; University of Florence
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200309
• 发表日期: 2023
• 页码: 30-73
• 关键词: product compatibility; market power; COMPETITION; GOODS; consumers; monopoly; match; mix

摘要

We study mix-and-match compatibility choices of firms selling com-plementary products in a dynamic setting. Contrary to what hap-pens in a static setting where symmetric firms choose compatibility (Matutes and Regibeau 1988 ), when switching costs are high and firms make price discrimination based on past purchases, symmet-ric firms choose incompatibility to soften future competition if the discount factor is large, which harms consumers. Interoperability increases consumer surplus at least for high switching costs. Data portability, by reducing switching costs, induces the firms to choose compatibility more often but, given a compatibility regime, benefits consumers only if a nonnegative pricing constraint binds.