Networks, Options and Preemption.

This paper examines the irreversible adoption of a technology whose returns are uncertain, when there is an advantage to being the first adopter, but a network advantage to adopting when others also do so. Two patterns of adoption emerge: sequential, in which the leader aggressively preempts its rival; and a more accommodating outcome in which the firms adopt simultaneously.

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Year of publication:	2000
Authors:	Mason, R. ; Weeds, H.
Institutions:	Department of Economics, University of Warwick
Subject:	TECHNOLOGY \| NETWORK ANALYSIS \| EFFICIENCY

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Series:	The Warwick Economics Research Paper Series (TWERPS).
Type of publication:	Book / Working Paper
Language:	English
Notes:	37 pages
Classification:	C73 - Stochastic and Dynamic Games ; D81 - Criteria for Decision-Making under Risk and Uncertainty ; L13 - Oligopoly and Other Imperfect Markets ; O31 - Innovation and Invention: Processes and Incentives
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005368785