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We consider dynamic competition among platforms in a market with network externalities. A platform that dominated the market in the previous period becomes "focal" in the current period, in that agents play the equilibrium in which they adopt the focal platform whenever such equilibrium exists....
Persistent link: https://www.econbiz.de/10011451079
Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two …
Persistent link: https://www.econbiz.de/10011536190
We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive stochastic opportunities to migrate to an entrant. They can accept a migration opportunity or wait for a future opportunity. In some circumstances, users have incentives to...
Persistent link: https://www.econbiz.de/10012195821
Many data situations require the consideration of network effects among the cross-sectional units of observation. In this paper, we present a generalized panel model which accounts for two features: (i) three types of network effects on the right-hand side of the model, namely through weighted...
Persistent link: https://www.econbiz.de/10012306579
This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product …
Persistent link: https://www.econbiz.de/10013503368
We evaluate the welfare effects of the Roam-Like-At-Home regulation, which drastically re-duced the price of accessing the mobile internet for EU residents when traveling abroad in the European Economic Area. Estimates from individual-level usage data suggest that consumer surplus increased by...
Persistent link: https://www.econbiz.de/10012888496
We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly unequal country, South Africa. Using six waves of a consumer survey of over 134,000 individuals between 2009-2014, we estimate a discrete-choice model allowing for...
Persistent link: https://www.econbiz.de/10012029118
Non-pecuniary incentives motivated by insights from psychology ("nudges") have been shown to be effective tools to change behavior in a variety of fields. An often unanswered question relevant for public policy is whether these promising interventions can be scaled up. In cooperation with a...
Persistent link: https://www.econbiz.de/10012260629
This paper studies the decentralized adoption of a technology standard when network effects are present. If the new standard is incompatible with the current installed base, adoption may be inefficiently delayed. I quantify the magnitude of "excess inertia" in the switch of the movie...
Persistent link: https://www.econbiz.de/10012157286
China's growth strategy as set out in the 11th 5-year plan in 2005 called for upgrading of product quality, the development of an innovation society, and reduced reliance on foreign intellectual property with high license fees. Consistent with this policy, China has been involved in recent years...
Persistent link: https://www.econbiz.de/10003807873