This paper shows that an incumbent monopolist's incentive confronting a new entrant depends on the degree of product differentiation and the strength of network externality. If products are homogeneous, the incumbent never wants to invite entry regardless of the degree of network externality. On...

This paper explores the structure and function of the intra-firm trade network in Mitsubishi Corporation (Mitsubishi Shoji) from 1928 to 1936. In this period, Mitsubishi Co. substantially expanded its global branch network. Using original documents of Mitsubishi Co., we obtained the data on the...