  Consumers only discover at the first seller which product best fits their
needs, then check its price online, then decide on buying. Switching sellers is
costly. Equilibrium prices fall in the switching cost, eventually to the
monopoly level, despite the exit of lower-value consumers when changing sellers
becomes costlier. More expensive switching makes some buyers exit the market,
leaving fewer inframarginal buyers to the sellers. Marginal buyers may change
in either direction, so for a range of parameters, all firms cut prices.
