Chen and Chen (J Ind Compet Trade 11:43−55, <CitationRef CitationID="CR1">2011</CitationRef>) analyze the effects of compatibility under system product Cournot competition with network externalities. They show that a firm’s optimal strategy is to set an incompatible system standard, even though perfect compatibility is socially...</citationref>

This paper develops the Hotelling spatial model investigating the optimal choices of R&D risk in a market exhibiting network externalities. Assuming that firms perform R&D projects with identical expected outcomes but different risk degrees, it is found that, under certain conditions, the level...