We analyse firms’ incentives to provide two-way compatibility between two network goods with different intrinsic … price competition as well as the compatibility choice. The final degree of compatibility allows firms to manipulate the … overall differentiation. Under weak network effect, full compatibility may arise : the low quality firm has higher incentives …

. There are two firms, an incumbent and a potential entrant. Compatibility means in our model that the inherent qualities of … maximal quality difference that allows compatibility i.e. the compatibility interval is chosen by the incumbent which involves … sufficient condition on the market size of a standard vertical differentiation model remains valid under compatibility. However …

Compatibility of network products is an important issue in markets for communication technology as well as hard- and … product compatibility. We present a strategic two-stage game of two firms deciding independently or commonly on the degree of … product compatibility in the first stage and on prices in the second stage. Indeed, partial compatibility constitutes a …

Compatibility of network products is an important issue in markets for communication technology as well as hard- and … product compatibility. We present a strategic two-stage game of two firms deciding strategically or commonly on the degree of … product compatibility in the first stage and on prices in the second stage. Indeed, partial compatibility constitutes a …

This paper analyzes the unilateral choices of application compatibility by platforms and the endogenous affiliations of … application compatibility is not an equilibrium unless the cost for achieving application compatibility is zero. We also find that … chooses compatibility and that, these asymmetric equilibria are harmful both to the content providers and to users, compared …