In the economic science become as LOCK in effect (of ton LOCK in: include, lock up) costs designation, which make a change of the current situation uneconomic. LOCK in effects become problematic, if they force to lossy behavior, in order to turn still larger losses away.

LOCK in effects for enterprises

Enterprises try to actually bind customers by LOCK in effects and to avoid even possible LOCK in effects. For example sinking costs force (sunk costs) to hold or long-term acceptance contracts for certain raw materials enterprises to the production of a property. In addition, LOCK in effects arise in the employer-employee relationship between employers and employees, if at least one contracting party ex had to apply ante costs, in order the other contracting party to actually bind (e.g. costs of learning operatingspecific talents or attitude and Screeningkosten)

LOCK in effects for consumers

Consumers become by financial investments in certain technologies (PC vs. Macintosh) or by temporal investments (insurance broker, who knows personal situation by co-operation of many years) to an offerer or to a group of offerers bind.

Articles in category "LOCK in effect (economics)"

We found here 19 articles.

Related Websites

We found here 3 related websites.

• Business Start-ups, The Lock-in Effect, and Capital Gains Taxation
  Business Start-ups, The Lock-in Effect, and Capital Gains Taxation ... Massachusetts Institute of Technology (MIT), Department of Economics. ...


• Property Tax Limitations and Mobility: The Lock-in Effect of ...
  Property Tax Limitations and Mobility: The Lock-in Effect of California's Proposition 13 ... K2 - Law and Economics - - Regulation and Business Law ...


• This is a page devoted to Network Effects, Path Dependence, Lock ...
  A discussion of the economics of networks, path dependence, and lockin, with particular attention ... Indirect Economic Effects of Copying Technology. 153 ...