Network Externalities, Competition, and Compatibility |
Common terms and phrases
achieve actual adapter adaptor adoption analysis assume assumption Avinash Dixit benefit brand Carl Shapiro compatibility technology compatible products Competition consider construction consumer expectations consumer surplus consumer's consumption externalities correspondence costs of compatibility Cournot equilibrium decision denote depends derives determine differ Discussion Papers Don Fullerton duopoly effect equal equation equilibrium example exist fact feasible Figure firm 1's firm's fixed costs fulfilled expectations function Gene given Grossman hardware important Income incompatible increase industry standard initial joint Katz lower marginal market share Michael monopoly move to compatibility natural monopoly network externalities network sizes Note obtain Optimal positive possible present private incentives products compatible profits Proposition purchase raise relevant network result rise set of expectations side payments smaller social incentives Study symmetric tions total output unique unit valuations welfare willingness to pay ΔΠ