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In enterprise software markets, firms are increasingly using services-based business models built on open …-source software (OSS) to compete with established, proprietary software firms. Because thirdparty firms can also strategically … contribute to OSS and compete in the services market, the nature of competition between OSS constituents and proprietary software …
Persistent link: https://www.econbiz.de/10012837117
We use a Hotelling linear city model to study competition between open source and proprietary software, where only the … producer of the proprietary software aims at maximizing the profit. The producer of the proprietary software must decide on … for the producer of the proprietary software. We found that the proprietary producer's choice of compatibility strategy …
Persistent link: https://www.econbiz.de/10014063018
This paper develops a modified Stackelberg game model for a duopoly market. Unlike the traditional duopoly where the leader and the follower both exist in the market, the modified model supposes a preexisting leader and a follower that has not yet entered the market. This specific situation has...
Persistent link: https://www.econbiz.de/10012961099
The purpose of this paper is to analyze the role of the public firm in a spatial duopoly model a la Hotelling in the case of a low willingness to pay. We find that the presence of a public firm has the well known regulatory function in a market with a relative high willingness to pay; it is...
Persistent link: https://www.econbiz.de/10012112292
This paper applies the framework of endogenous timing in games to mixed quantity duopoly, wherein a private domestic or foreign firm competes with a public, welfare maximizing firm. We show that simultaneous play never emerges as a subgame-perfect equilibrium of the extended game, in sharp...
Persistent link: https://www.econbiz.de/10010343823
This paper studies competition in data-driven markets, that is, markets where the cost of quality production is decreasing in the amount of machine-generated data about user preferences or characteristics, which is an inseparable byproduct of using services offered in such markets. This gives...
Persistent link: https://www.econbiz.de/10012902290
With this research we examine whether observing firm-specific production levels leads to a less competitive market outcome. We consider an endogenous information setting where firms can freely decide whether they want to share information about their past production levels. By voluntarily...
Persistent link: https://www.econbiz.de/10010530643
We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer...
Persistent link: https://www.econbiz.de/10010415920
In this paper we investigate a two-period Bertrand-Edgeworth oligopoly model in which two capacity-constrained firms (incumbents) compete facing future demand uncertainty as well as uncertainty about entry. These firms must choose between pricing low and secure sales in the first period or,...
Persistent link: https://www.econbiz.de/10013226891
We analyze the effects of asymmetric switching costs on two identical firms that produce an homogeneous good and compete in prices. Both firms inherit a fraction of the market which is “locked-in” by the switching costs. When switching costs are low, firms face a tradeoff between charging a...
Persistent link: https://www.econbiz.de/10013120717