Avoiding market dominance: product compatibility in markets with network effects
نویسندگان
چکیده
منابع مشابه
Avoiding Market Dominance: Product Compatibility in Markets With Network Effects
As is well recognized, market dominance is a typical outcome in markets with network effects. A firm with a larger installed base offers a more attractive product which induces more consumers to buy its product which produces a yet bigger installed base advantage. Such a setting is investigated here but with the main difference that firms have the option of making their products compatible. Whe...
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In markets that exhibit network effects, the presence of digital conversion technologies provides an alternative mechanism to achieve compatibility. This study examines the impact of conversion technologies on market equilibrium in the context of sequential duopoly competition and proprietary technology standards. We analyze this question by departing from the extant literature to endogenize th...
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ژورنال
عنوان ژورنال: The RAND Journal of Economics
سال: 2009
ISSN: 0741-6261,1756-2171
DOI: 10.1111/j.1756-2171.2009.00073.x