Author ORCID Identifier
Smith - https://orcid.org/0000-0003-1286-0852
Document Type
Article
Publication Date
7-2-2023
Publication Title
Review of Industrial Orgnaization
Abstract
In the technology and design industries, one product builds on another: A smart tele- vision enhances a smart phone. However, due to complementary features, the utility that is gained by owning both products from the same firm is greater than the sum of the two products’ utility if purchased from separate firms. Aftermarkets suggest that the margins of the second product would increase. Instead, we show that the firms’ complementary utility offset each other, which results in reduced prices. Further, consumer purchase behavior is a function of the product release order; given a different release schedule, some consumers would purchase from a different company.
Recommended Citation
Akhundjanov, S.B., Smith, B.O. & St. Brown, M. Path Dependence as a Path to Consumer Surplus and Loyalty. Rev Ind Organ (2023). https://doi.org/10.1007/s11151-023-09904-2
Comments
This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s11151-023-09904-2
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