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 costs, thereby violating the Coase conjecture.

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Year of publication:	1999
Authors:	Economides, N.
Institutions:	Finance Department, Stern School of Business
Subject:	MONOPOLIES \| EXTERNALITIES \| MARKET STRUCTURE

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Series:	New York University, Leonard N. Stern School Finance Department Working Paper Seires.
Type of publication:	Book / Working Paper
Notes:	13 pages
Classification:	L1 - Market Structure, Firm Strategy, and Market Performance ; D4 - Market Structure and Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005663551