1 Summary of the Paper

(ひとことメモ)

1.1 Motivation

  • This paper focuses on two types of market frictions, namely, consumer search and switching costs
  • Quantifying market frictions is important for the following reasons
    • Accounting for consumers’ limited information is necessary to recover true consumer preferences
    • Both search and switching costs can increase companies’ market power and lead to higher prices for consumers

1.3 Contribution