Vertical product differentiation, network externalities, and compatibility decisions
نویسندگان
چکیده
منابع مشابه
Vertical Product Di erentiation, Network Externalities, and Compatibility Decisions
We analyse the subgame perfect equilibrium of a four stage game in a model of vertical product di erentiation, where the consumer's evaluation of a product depends on its inherent quality and on its network's size. First, two rms choose their product's inherent quality. Then they may mutually agree on providing an adapter before competing in prices. Finally, consumers buy. We nd that, despite t...
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We study firms compatibility decisions in a horizontal differentiation model with network externalities. By means of a nested multinomial logit demand structure, we describe the trade-off between network externalities and product differentiation. Simple and general results are derived, which hold for any finite number of firms and which account for any functional form of the externality functio...
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Abstract: In this paper competition between two network firms is analysed under two alternative regulatory regimes: a global connectivity regulation (GCR) and an efficient component pricing regulation (ECPRe). Whereas a GCR imposes a full quality of reciprocal interconnection, firms will choose vertical product differentiation in order to lower price competition, while under a ECPRe they will c...
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Prior to joining the doctoral program at Minnesota, he worked in industry and consulting for eleven years at several major companies, including Digital Equipment Corporation as a software specialist, a coal-mining company in Indonesia as a superintendent of computer and network operations, Andersen Consulting as a senior consultant and manager, and an Internet startup as a general manager. His ...
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ژورنال
عنوان ژورنال: International Journal of Industrial Organization
سال: 2001
ISSN: 0167-7187
DOI: 10.1016/s0167-7187(99)00029-6