costs. The "friction-free" economy is a fiction; look for more lock-in, not less, as the information age progresses.
Carl Shapiro is a professor at the Haas School of Business at UC Berkeley. Hal R. Varian is the dean of UC Berkeley's School of Information Management. Their book Information Rules: A Strategic Guide to the Network Economy (Harvard Business School Press) will be published Nov. 10.
Contractual Commitments: Breaking contracts can lead to compensatory damages
Durable Purchases: Replacing existing equipment can be expensive
Brand-specific Training: Switching programs means your team has to learn a new interface
Information and Databases: New systems are needed when companies change formats
Search Costs: Finding and evaluating a new supplier costs time and money
Specialized Suppliers: Sometimes a critical component is supplied by a single supplier
Loyalty Programs: Switching can cause customers to lose out on program benefits
