The conventional wisdom is that indirect network effects, unlike direct network effects, do not give rise to externalities. In this paper we show that under very general conditions, indirect network effects lead to adoption externalities. In particular we show that in markets where consumption...

We discuss issues of the application of antitrust law and regulatory rules to network industries. In assessing the application of antitrust in network industries, we analyze a number of relevant features of network industries and the way in which antitrust law and regulatory rules can affect...

Comment of Nicholas S. Economides on the Revised Proposed Final Judgment in United States v. Microsoft

Participants in a market, buyers and sellers, may need the service of an intermediary who will put them into contact and give them information about their potential trading partner. The intermediary chooses what price it will charge to each side to have access to its service. It also chooses...

We discuss the formation of technical standards platforms in industries with network externalities where firms are free to choose their degree of technical compatibility with competitors. In our model, firms choose affiliation to a technical standards coalition in the first stage of a game, and...

IT SEEMS APPROPRIATE TO ASK WHAT IS SPECIAL ABOUT INFORMATION TECHNOLOGY BEFORE ONE SETS OUT TO ANSWER THE QUESTION OF HOW INVESTMENTS IN INFORMATION INFRASTRUCTURESHOULD BE VALUED AND REGULATED. THIS PROJECT THEREFORE DISCUSSES THE THEORETICAL AND PRACTICAL CONCEPTS UNDERLYING RECENT...

We discuss the case of a monopolist of a base good in the presence of complementary goods provided either by it or by other firms. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of complementary goods, i.e., the extent of...

Le terme `logiciel libre' désigne à la fois un bien -- le logiciel -- indispensable au fonctionnement des sociétés modernes informatisées, et un mode de production et de distribution -- libre. Ce mode de production et de distribution est suffisamment original pour poser des problèmes...

The objective of our approach is to develop a model which captures horizontal product differentiation under environmental awareness, product innovation under network effects, and price competition whereby environmentally friendly products are costlier to produce. As an example, we refer to...