Technology Adoption in the Presence of Network Externalities |
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analysis Angus Deaton Avinash Dixit c₂ Carl Shapiro cheaper choose technology compatible products competing technologies competition consumer surplus consumers ignore consumers purchasing technology consumers will purchase consumption externalities cost differences Don Fullerton dynamics Eaton and Gene Economics entry facto standardization Figure firm first-mover advantage first-period consumers compare first-period price Gene Grossman given gross consumption benefits Hence industry evolution intermediate benefits investments Katz and Carl later consumers learning-by-doing marginal cost market equilibrium market outcome maximal Michael Michael L N₁ N₂ network effects Oligopoly Ordover penetration pricing period-two consumers Policy preferred technology Presence of Network Princeton University Princeton property rights purchase decisions QWERTY Rational Expectations reverse stranding second-best second-mover advantage second-period price second-period sales shaded region sponsored technology technologies is sponsored Technology Adoption technology B wins technology choice unsponsored v(N₁ v(x₁ v₁ V₂ Welfare Willig wins the first-period within-period Woodrow Wilson School x₁ xxxxxx