Quality Improvement and Network Externalities

We analyse the optimal pricing choice of an incumbent firm that sells a good with network externalities and is threatened by the entry of a higher quality variant. In the framework of a vertical differentiation model, we find a necessary and sufficient condition under which quality improvement occurs as a result of this competition

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Year of publication:	[2006]
Authors:	Gabszewicz, Jean J.
Other Persons:	Garcia, Filomena (contributor)
Publisher:	[2006]: [S.l.] : SSRN

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Extent:	1 Online-Ressource (21 p)
Series:	CORE Discussion Paper ; No. 2005/96
Type of publication:	Book / Working Paper
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 9, 2006 erstellt
Other identifiers:	10.2139/ssrn.886294 [DOI]
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L12 - Monopoly; Monopolization Strategies ; L15 - Information and Product Quality; Standardization and Compatibility
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012734271