Switching Cost under Real Option Analysis and Complementary Investment
| Autor: | Chih-wei Wu, 吳志韋 |
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| Rok vydání: | 2010 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 98 To suppliers, the switching cost is a kind of lock-in or prohibit consumers from switching supplier behaviors; to consumers, the existence of switching costs cause the elasticity of demand to decrease, or lock-in the suppliers in their original markets. The main source of switching costs including: the need for compatibility with existing equipment, transaction costs of switching suppliers, the cost of learning to use new brands, uncertainty about the quality of untested brands (e.g. search costs), discount coupons and similar devices (e.g. loyalty program), psychological costs of switching or non-economic “brand loyalty”. The research of switching costs can be divided into two categories, exogenous and endogenous. Exogenous switching costs is generally substituted by proxy to denote the concept of switching costs and effect from switching costs on suppliers in the market. Endogenous switching costs is often applied economic models to discuss the implied how the switching cost of a price affects the consumers in the market and emphasizes the traits of the product designs such as complementary goods of investment or technical compatibility. The endogenous switching costs and exogenous switching costs are mainly evaluated by historical simulation method and Net Present Value (NPV) method which neglect the time value of dynamic effects. For the further improvement to the past literatures, we apply Kalman Filter Approach and Real Options Analysis (ROA) to combine the active management of NPV with options value, the value of endogenous switching costs, to denote the effect of technological compatibility of firms on endogenous switching costs. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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