2 Signals
Market1 source

A Stigler Center paper, reported through Cory Doctorow's commentary, uses 9,500 acquisition filings with over $1 trillion in customer-relationship intangibles plus earnings-call admissions to show that firms deliberately build lock-in. Sectors with stronger lock-in are reported to have higher margins, fewer entrants, less innovation, and weaker job and wage growth. The work challenges Chicago-school assumptions, but the underlying study is not yet independently assessed.

Constraint shift

The article shifts the central competition-policy constraint from 'dominant firms cannot sustain abuse because dissatisfied customers will defect' to 'firms can make defection structurally impossible, and that lock-in itself deters entry'. If the reported findings hold, enforcers should target switching costs and exit barriers as first-order competitive harms rather than waiting for observable price effects or market entry.

Evidence

The source is a persuasive secondary account, not the underlying paper: it describes a large quantitative dataset and several executive quotations but gives no methodology, controls, or robustness tests. The few illustrative cases are selected to fit the argument, and the headline relationships are phrased in correlational terms in the blog. Treating the study's conclusions as established requires reading the original paper and independent replication.

Evidence42
Novelty66
Commercial24
researchstrategynoveltyevidence
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