Switching Costs

Essay specific features

 

Issue:

Technology

 

Written by:

Guy F

 

Date added:

June 17, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 767

 

Was viewed:

1617 times

 

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Essay content:

S/he will switch only if (p - g) + s + p/r < p + p/r (p - g) is what s/he pays now, and s/he also incurs a switching cost s. From second month onward, s/he pays p, the present value of which is p/r. Note that p + p/r is what is costs to stay with the current provider. The minimum g (goodies) that will make the subscriber indifferent between switching to the new provider and staying with the current provider can be found by making the net present value of what it will cost with the new service provider = net present value of what it will cost to stay with the current service provider...
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Note that p + p/r is what is costs to stay with the current provider. The minimum g (goodies) that will make the subscriber indifferent between switching to the new provider and staying with the current provider can be found by making the net present value of what it will cost with the new service provider = net present value of what it will cost to stay with the current service provider...
displayed next 300 characters

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