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achieving compatibility adapter assumption asymmetric equilibria Avinash Dixit brand of hardware Carl Shapiro compatibility are fixed compatibility decision compatibility mechanism compatibility technology Competition consumer surplus consumption externalities costs of compatibility CPM operating system denote Discussion Papers Don Fullerton equal equation equilibrium is symmetric equilibrium reaction correspondence externalities are present Figure firm l's reaction firm's fixed costs fulfilled expectations equilibrium function given Grossman incentives for compatibility incompatibility equilibrium increase industry standard initial equilibrium joint profits Katz level of consumer level of output mainframe computer marginal consumer marginal costs market share move to compatibility natural monopoly network effects network externalities networks compatible Ordover Papers in Economics patibility payments are feasible personal computer Princeton University private and social private incentives produce compatible products products are compatible products compatible Proposition relevant network set of expectations side payments social incentives Symmetric Duopoly tions total output valuations willingness to pay Woodrow Wilson School