Durable Goods, Innovation and Network Externalities
نویسندگان
چکیده
منابع مشابه
Durable Goods Monopoly with Network Externalities with Application to the PC Operating Systems Market
We analyze a model of multi-period monopoly in durable goods. Taking into consideration the special conditions of software markets, we assume that there are no used software markets and that manufacturers stop selling older software when they introduce a replacement model. We show that nominal as well as discounted (real) prices decrease over time but are above cost, thereby violating the Coase...
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This paper investigates the efficiency of innovation investment in durable goods monopoly under a threat of entry. It is well known that the durability causes time inconsistency to the durable goods monopolist, which in turn provides a competitive pressure. When entry threat exists, the durability of the product endows the monopolist with the power to deter entry since the current sales alter t...
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Positive externalities characterize the consumption of a majority class of information goods and services such as software, e-mail, and online content and services including virtual communities. We show that network externality is critical for the market segmentation and product line decisions of an information goods seller. With externality, a monopoly of multiple existing products offers exac...
متن کاملConsumer Recongnition in Durable , Diferentiated Goods Markets with Technological Innovation
In some markets, firms can price-discriminate across consumers based on their purchasing history. In particular, when firms introduce an innovation to their product, they may offer an upgrade price to their former customers, and a switching price to poach some consumers from their rivals. In this paper I examine the existence of an equilibrium with consumer poaching in a durable-good market cha...
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Adurable-goods monopolist who will be introducing new and improved versions of his product must decide how to price his products, keeping in mind the relative attractiveness of the current and future products. Dhebar (1994) has shown that if technology is changing too quickly and the producer cannot credibly commit to future prices and quality, then no equilibrium strategy exists. That is, ther...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2007
ISSN: 1556-5068
DOI: 10.2139/ssrn.1083607