Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim Ingemar - C.E.P.R. Discussion Papers - 2013
In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the …