Switching Costs


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Switching Costs

In microeconomics, what one must spend in order to upgrade to a higher technology. For example, switching costs may involve purchasing a new, higher quality mobile phone. The higher the switching costs are for a consumer, the less likely that consumer is to adopt the higher technology.
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Other equilibria can also appear, depending on the relevance of switching costs and are summarized in Figure 3a.
This dramatic three-to-one or better chip reduction slashes communications equipment switching costs for Agere's customers by nearly 70 percent.
And with some reduced switching costs, it might extend their market reach deeper into the States.
Cross-sellers will aggressively target insurance and investment products, at least those products that lend themselves to comparisons and have low switching costs.
It will reduce or do away with switching costs because it facilitates backward compatibility, meaning that companies will not have to "rip and replace" existing systems.
Because bank competition within local market areas directly affects retail customers, any trends toward increasing concentration and higher switching costs suggest that antitrust laws may become a constraint on more mergers than in the past.
Customers' switching costs increase as the number of channels of interaction with the company increases.
Moshe Kim, Doron Kliger and Bent Vale: "Estimating switching costs and oligopolistic behaviour".
Unique to Convergent is an approach that enables carriers to deliver high-value services to end users, while drastically lowering telephony switching costs, supporting much higher density, and realizing savings on space.
95 per cent with no redemption penalty beyond the fix term and pounds 700 cashback to cov er switching costs.
Thus, consumers have a reservation-price differential equal to the switching costs and will not switch to a new supplier unless the quality-adjusted price reduction exceeds this switching cost.
Since Univa Grid Engine is a 'drop-in replacement' there are zero switching costs and organizations can eliminate the risk of feature freeze.