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The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model...
Persistent link: https://www.econbiz.de/10010905457
This paper investigates how switching costs affect product compatibility and market dynamics in network industries. A reduction in the switching cost makes the firms' products more attractive relative to the outside good, which diminishes the market expansion benefit of making products...
Persistent link: https://www.econbiz.de/10010905466
Online platforms, such as Google, Facebook, or Amazon, are constantly expanding their activities, while increasing the overlap in their service offering. In this paper, we study the scope and overlap of online platforms' activities, when they are endogenously determined. We model an expansion...
Persistent link: https://www.econbiz.de/10010905475
and exercise second-degree price discrimination. We apply this model to the smartphone industry and quantify the welfare … effects of price discrimination and competition. We use counterfactual simulations to assess how the welfare changes when each … firm only offers its highest-quality product. We also study the market outcomes such as price, product variety and welfare …
Persistent link: https://www.econbiz.de/10010933639
The Internet has drastically altered the nature of competition in the news industry. This article develops a model of price and quality competition between firms in the online news industry. In equilibrium, firms randomise in their pricing strategies and this generates the cross- sectional...
Persistent link: https://www.econbiz.de/10009352208
upgrade their technology from the old analog technology to the new digital technology in markets with more entry, suggesting … that entry also has indirect effects on tariff choice via firms’ technology adoption decisions. …
Persistent link: https://www.econbiz.de/10005585454
We document entry and capacity expansion in US long-distance fiber-optic networks before and during the “telecom boom.” We disentangle the many swaps and leases between networks in order to measure owned route miles versus route miles shared with other carriers. Entry appears much more...
Persistent link: https://www.econbiz.de/10005585457
See http://www.netinst.org/NET_Working_Papers.html #46
Persistent link: https://www.econbiz.de/10005585458
welfare effects of entry into residential local telephone service in New York State using household-level data from September … gains a monthly equivalent of $2.33, or 6.2% of her bill, in welfare from competition. These gains accrue primarily from …
Persistent link: https://www.econbiz.de/10005622691
In this paper, we evaluate the consumer welfare effects of entry into residential local phone service in New York State … evaluation of its effects on consumer welfare using household-level data on service choices from the third quarter of 1999 to the …' services gain on average an equivalent of $2.33 per month in overall welfare from local telecommunications services, or 6.2% of …
Persistent link: https://www.econbiz.de/10005622703