1:07 Behavior
How Convenience Becomes Rent
Convenience is usually priced as a one-time decision but delivered as an ongoing obligation; the moment you stop owning the capability yourself, you begin renting it indefinitely.
Source
Competition when Consumers have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade
Claim this source supports
“Switching costs are a real and well-studied economic force: once a consumer has invested in one provider, the cost of moving to another can hold them in place and give the incumbent pricing power.”
Cited in
1:07