BYTESKOSTNADER OCH MARKNADSMAKT : Estimering av bolånemarknadens byteskostnader och dess påverkan på marknadsmakt

Sammanfattning: When consumers demand to change from one mortgage institution to another within a homogenous market, they tend to face both monetary and non-monetary switching costs. As a result, a consumer lock-in effect arises making it difficult and costly to change provider, which hamper the consumer mobility on the market. The objective of this paper is to measure these consumer switching costs on the Swedish mortgage market and how this affect market power. First, the consumer switching costs is estimated by applying Shy’s (2002) model. Secondly, Lerner Index is calculated to measure marker power, which is used to study the influence of switching costs on market power by applying a Random Effects Model. The results shows that consumers on the Swedish mortgage market face a switching cost that are approximately between 4-5% of the consumer mortgage. However, no significant influence of switching costs on market power is found. Furthermore, the results mirror a complex market where further research is needed.