Switching costs in infinitely repeated games

B-Tier
Journal: Games and Economic Behavior
Year: 2009
Volume: 66
Issue: 1
Pages: 292-314

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that small switching costs can have surprisingly dramatic effects in infinitely repeated games if these costs are large relative to payoffs in a single period. This shows that the results in Lipman and Wang do have analogs in the case of infinitely repeated games [Lipman, B., Wang, R., 2000. Switching costs in frequently repeated games. J. Econ. Theory 93, August 2000, 149-190]. We also discuss whether the results here or those in Lipman-Wang imply a discontinuity in the equilibrium outcome correspondence with respect to small switching costs. We conclude that there is not a discontinuity with respect to switching costs but that the switching costs do create a discontinuity with respect to the length of a period.

Technical Details

RePEc Handle
repec:eee:gamebe:v:66:y:2009:i:1:p:292-314
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25