Network externalities and differentiation in an entry model

In a market characterized by network externalities, we consider a situation in which an established incumbent faces a new entrant: the differentiation degree chosen by the entrant increases with the network externalities, while the price set by the incumbent initially increases with the network externalities but eventually it decreases with the network externalities.

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Year of publication:	2011
Authors:	Colombo, Stefano
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 31.2011, 1, p. 75-84
Publisher:	AccessEcon
Subject:	Network externalities \| differentiation \| entrance

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	D4 - Market Structure and Pricing ; L1 - Market Structure, Firm Strategy, and Market Performance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008784414