axiom 2 – early entrants win the field
axiom 3 – significance precedes momentum
axiom 5 – producer and consumer utility
axiom 6 – gatekeepers, intermediaries, and the attention deficit
axiom 7 – positive feedback loops
axiom 8 – differentiation of products and pricing
axiom 9 – switching costs and lock-in
axiom 10 – free information: cooperation in a competitive environment
Axiom 9 – Switching Costs and Lock-in
Small consumer switching costs can constitute large barriers to entry, especially for mass-market products (Shapiro and Varian, 109).
The total cost of switching = costs the customer bears + costs the new supplier bears (Shapiro and Varian, 112).
When the costs of switching from one brand of technology to another are substantial, users face lock-in (Shapiro and Varian, 112).