We expect a firm's competitive advantage to manifest itself in a return on invested capital that is higher than the opportunity cost of capital. Deviations of returns from the cost of capital are a signal for competitive entry or for exit, while the speed of convergence indicates the strength of...

This paper models the competition of user networks as a continuous-time Markov process. It presents a dynamic version of the Discrete Choice Analysis with state-dependent choice probabilities. Among other things, we show that the network competition can be characterized by the coexistence of...