The dynamics of technological adoption are studied in a Markovian industry in which competing firms interact through price and network externalities. Technological complementarities alter firms productivities, entailing permanent fluctuations in output and equilibrium price. The limit...

This paper provides an analysis of compatibility in a sequential game in which firms first choose whether they supply compatible products and then set the price which they charge. The equilibrium compatibility configuration is the outcome of a trade-off between consumers' valuation of...