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Customer Poaching and Brand Switching
Oleh:
Tirole, Jean
;
Fudenberg, Drew
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Rand Journal of Economics vol. 31 no. 4 (2000)
,
page 634-657.
Topik:
customer
;
customer poaching
;
brand switching
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
RR10.4
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
Firms sometimes try to "poach" the customers of their competitors by offering them inducements to switch. We analyze duopoly poaching under both short - term and long-term contracts assuming either that each consumer's brand preferences are fixed over time or that preferences are independent over time. With fixed preferences, short - term contracts lead to poaching and socially inefficient switching. The equilibrium with long - term contracts has less switching than when only short - term contracts are feasible, and it involves the sale of both short - term and long-term contracts. With independent preferences, short - term contracts are efficient, but long - term contracts lead to inefficiently little switching.
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