Comment on Does quality Win? Network E¤ects versus Quality in High-Tech Markets
نویسندگان
چکیده
What will the players choose? To a lay person, the answer is obvious both players should choose the high quality platform and, consequently, enjoy higher payo¤s. To a game theorist, however, the answer is far from clear. If one player expects that the other will choose A, then clearly choosing A and enjoying a payo¤ of 2 is better than choosing the high quality platform and enjoying a payo¤ of only 1. Both (A, A) and (B, B) are equilibria to the game the network e¤ects associated with coordinating on platform A dominate the bene ts of being the sole user of the high quality platform. There is no a priori reason to think that users wont get stuck
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Network Effects, Quality and the Success of New High-Tech Products
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