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This paper investigates the patent licensing networks formed by competing firms. Assuming that licensing agreements can … of independent patents, we fully characterize the bilaterally efficient networks and find that when the cost reduction … efficient one. We also show that the bilaterally efficient networks can be sustained as subgame-perfect Nash equilibria with …
Persistent link: https://www.econbiz.de/10010933642
Abstract I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative...
Persistent link: https://www.econbiz.de/10010934839
Traditionally, the value of a product has been assessed according to the direct revenues the product creates. However, products do not exist in isolation but rather influence one another's sales. Such influence is especially evident in eCommerce environments, where products are often presented...
Persistent link: https://www.econbiz.de/10009358871
This paper studies the impact of heterogeneity in interdependence of trader values on price inference and welfare. A model of double auction with quasilinear-quadratic utilities is introduced that allows for arbitrary Gaussian information structures. With heterogeneous interdependence, some...
Persistent link: https://www.econbiz.de/10010698671
for assessing the influence of networks on demand and revenue patterns in electronic commerce, and provides new empirical …
Persistent link: https://www.econbiz.de/10005040808
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...
Persistent link: https://www.econbiz.de/10005585465
This paper develops and analyzes a model of competition between platforms in an industry with indirect network effects, with a specific focus on complementary product exclusivity. The objective is to understand the determinants of exclusivity and explore its effects on competition. We find that...
Persistent link: https://www.econbiz.de/10005585466
We study a retail benchmarking approach to determine access prices for interconnected networks. Instead of considering … network i pays to network j as a linear function of the marginal costs and the retail prices set by both networks. In the case …
Persistent link: https://www.econbiz.de/10005585477