Yano, Makoto; Dei, Fumio - In: Canadian Journal of Economics 39 (2006) 2, pp. 455-476
The introduction of a new product often causes a massive (discrete) demand shift to the new product. This study demonstrates that if a large-scale demand shift to a new product is accompanied by network externalities, it may result in `submarginal-cost pricing,' by which the seller sets its...