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      Consumer Inertia Remove Consumer Inertia →

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      • 2021
      • Working Paper

      Consumer Inertia and Market Power

      By: Alexander MacKay and Marc Remer
      We study the pricing decision of firms in the presence of consumer inertia. Inertia, which can arise from habit formation, brand loyalty, and switching costs, generates dynamic pricing incentives. These incentives mediate the impact of competition on market power in...  View Details
      Keywords: Consumer Inertia; Market Power; Dynamic Competition; Demand Estimation; Consumer Behavior; Markets; Performance; Competition; Price
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      MacKay, Alexander, and Marc Remer. "Consumer Inertia and Market Power." Harvard Business School Working Paper, No. 19-111, April 2019. (Revised January 2022. Direct download.)
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