CSORBA, GERGELY; HAHN, JONG-HEE - In: Journal of Industrial Economics 54 (2006) 2, pp. 253-268
In markets subject to network effects, firms often remove some functions of their original products and sell a functionally-downgraded version at a lower or zero price. This paper aims to provide a pure network effect based explanation of such a practice. Building a functional degradation model...