Showing 1 - 10 of 220
This Paper examines competition between a dominant network and a challenging network with third-degree or perfect price-discrimination, allowing for arbitrary configurations of network externalities, as well as horizontal and vertical product differentiation. Domination in the coordination game...
Persistent link: https://www.econbiz.de/10005661635
We examine a Bertrand competition game between two intermediaries offering matching services between two sides of a market. Indirect network externalities arise as the probability of finding one's match with a given intermediary increase with the number of agents of the other side who use the...
Persistent link: https://www.econbiz.de/10005136667
This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to...
Persistent link: https://www.econbiz.de/10011262884
In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the option of selling to an incumbent increases innovation...
Persistent link: https://www.econbiz.de/10011083667
Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in efficiency, and gives vendors lucrative ex...
Persistent link: https://www.econbiz.de/10005124423
. Concerning standards, we find that setting a standard has a significant positive impact on diffusion for the analogue technology …
Persistent link: https://www.econbiz.de/10005656240
We develop a general theoretical framework of trade on a platform on which buyers and sellers interact. The platform may be owned by a single large, or many small independent or vertically integrated intermediaries. There also may be free entry into the market for platform slots, or platform...
Persistent link: https://www.econbiz.de/10005662172
We analyze whether and how the fact that products are not sold on open or public platforms but on competing for …-profit platforms affects sellers’ investment incentives. Investments in cost reduction, quality, or marketing measures are here the … sellers have weaker investment incentives with competing for-profit platforms. However, this is not necessarily the case. The …
Persistent link: https://www.econbiz.de/10005789005
Empirical scholarship on the standards-trade relationship has been held up due to methodological challenges …
Persistent link: https://www.econbiz.de/10011084713
Many high technology goods are based on standards that require access to several patents that are owned by different IP …
Persistent link: https://www.econbiz.de/10005666527