Showing 1 - 6 of 6
profit then compatibility is the dominant strategy. Which of these situations attains is likely to change over the product … life cycle. We add to the literature by showing the equilibrium structure of compatibility in a two-sided market.  …
Persistent link: https://www.econbiz.de/10014618844
quality provider. We also analyse the incentives for compatibility under quality uncertainty, and find that when quality … uncertainty is sufficiently high, compatibility may be used as a means of softening price competition.  …
Persistent link: https://www.econbiz.de/10014618931
This paper considers the effect of compatibility decisions on consumers and welfare in a setting where the platforms … platforms. The paper shows that imposing a higher degree of application compatibility, when applications are close substitutes …, may lower social welfare. Application compatibility is compared with platform compatibility and the results indicate that …
Persistent link: https://www.econbiz.de/10014619189
Policymakers face an increasing number of questions regarding whether markets efficiently choose technological standards. In this essay I survey the economic literature regarding standards, focusing on arguments that markets move between standards either too slowly or too swiftly.
Persistent link: https://www.econbiz.de/10005432449
product compatibility. In that paper, Garcia Mariñoso concludes that producers of so-called product systems (which consist of … hardware or platforms plus applications) can have strong incentives to achieve compatibility so that applications can be used … with different hardware/platforms. This is because compatibility reduces consumer switching costs which in turn allows …
Persistent link: https://www.econbiz.de/10005432465
firms' ability to commit to technological compatibility. In this note, I show that the results in the paper still hold with … market growth and I argue that technological compatibility is a time consistent strategy. …
Persistent link: https://www.econbiz.de/10005432480