Economides, Nicholas; Viard, V. Brian - NET Institute - 2004
We discuss the case of a monopolist of a base good in the presence of complementary goods provided either by it or by … existence of complementary goods, i.e., the extent of the network effect. We establish an equivalence between a model of a base …’ utility functions as a surrogate for the presence of complementary goods produced by others. We also assess and calibrate the …