How do markets work in which firms poach customers

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1. Many markets exhibit price dispersion. In light of the theoretical analysis presented in this chapter, how can one explain such a phenomenon? Relate your discussion to the analysis in given Chapter in which firms have private information about costs.

2. How can one (i) measure price dispersion, and (ii) empirically estimate switching costs?

3. Does an increase in switching costs lead to more relaxed or more intense competition? Discuss.

4. How do markets work in which firms poach customers?

Reference no: EM131282311

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