Network Externalities, Competition, and Compatibility |
Common terms and phrases
achieving compatibility adapter assumption Asymmetric Duopoly asymmetric equilibria Avinash Dixit brand of hardware Carl Shapiro compatibility decision compatibility mechanism compatibility technology Competition consumer expectations consumer surplus consumption externalities costs of compatibility CPM operating system denote Discussion Papers Don Fullerton duopoly equal equation equilibrium is symmetric equilibrium reaction correspondence externalities are present firm 1's reaction firm's fixed costs fulfilled expectations equilibrium function given 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 Michael Michael L monopoly equilibrium move to compatibility natural monopoly network effects network externalities networks compatible Ordover Papers in Economics payments are feasible personal computer Princeton University Princeton private incentives products are compatible products compatible Proposition relevant network set of expectations social incentives tions total output v(y² valuations willingness to pay Woodrow Wilson School x₁ ΔΠ