Switching costs make it less likely that the consumer of a network good will shift to a different company's product. This is called the __________ effect.

Question

Quizplus · Accepted Answer

The correct term is the "lock-in" effect, which refers to the situation where a customer is dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.

Switching Costs Make It Less Likely That the Consumer of a Network