Network externalities are playing an increasingly important role in the economy, and they have significant implications for firms’ marketing strategies. The authors study the effects of network externalities in conjunction with other product and firm characteristics on the survival of pioneers. They apply an accelerated failure time model to data on 45 office products and consumer durables. The...

We consider an auction setting in which bidders, even if they fail to obtain the good, care about the price paid by the winner. We study the impact of these price externalities on the first-price auction and the second-price auction in a symmetric information framework. We establish a distinction between price externalities that do not depend on the identity of the winner and price externalitie...

We derive a necessary and sufficient condition for the existence of equilibria with only two active players in the all-pay auction with complete information and identity-dependent externalities. This condition shows that the generic equilibrium of the standard all-pay auction is robust to the introduction of "small" identity-dependent externalities. In general, however, the presence of identity...

We derive a necessary and sufficient condition for the existence of equilibria with only two active players in the all-pay auction with complete information and identity-dependent externalities. This condition shows that the generic equilibrium of the standard all-pay auction is robust to the introduction of "small" identity-dependent externalities. In general, however, the presence of identity...

Leadership to the challenges of century will demand joint actions society. However, policymakers and social actors should take in mind extent which their generate power externalities. Positive externalities generated by an environmental policy emphasize a way demonstrate potential spillover beneficial effects multiple public policies. The are related private benefits about new consumption or pr...

We raise the problem of the minorities' survival in the presence of positive network externalities. We rely on the example of thematic clubs to illustrate why and in which circumstances such survival problems might appear, …rst considering the case of simple network externalities and then the case of cross network externalities. Sonnac and Skerdilajda Zanaj for their comments and suggestions.

In most economic applications, externalities prevail: the worth of a coalition depends on how the other players are organized. We show that there is a unique natural way of extending the nucleolus from (coalitional) games without externalities to games with externalities. This is in contrast to the Shapley value and the core for which many different extensions have been proposed.

We describe the behaviour of a monopolist supplying a vertically di¤erentiated good with network externalities. Assuming a ...xed cost of quality improvements, we show that the presence of network externalities enhances the incentive to expand output associated with scale economies. Although the quality distortion operated by the monopolist increases with network externalities, the output expan...