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Ad-sponsored Business Models and Compatibility Incentives of Social Networks
Zhu, Feng - NET Institute - 2008
This paper examines social networks' incentives to establish compatibility under fee and ad-sponsored business models …. I analyze the competition between two social networks and show that compatibility is only possible when the two networks …. Finally, compatibility also requires a significant number of single-homing users. The results are consistent with empirical …
Persistent link: https://www.econbiz.de/10005622685
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Mass Customization with Vertically Differentiated Products
Loginova, Oksana; Wang, X. Henry - NET Institute - 2008
We analyze a duopoly game in which products are initially differentiated in variety and quality. Each consumer has a most preferred variety and a quality valuation. Customization provides ideal varieties but has no effect on product qualities. The firms first choose whether to customize their...
Persistent link: https://www.econbiz.de/10005760654
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A Model of Product Design and Information Disclosure Investments
Markopoulos, Panos; Hosanagar, Kartik - NET Institute - 2013
As online information availability for products and services is increasing and as buyers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce buyer uncertainty. This article argues that today's firms should view...
Persistent link: https://www.econbiz.de/10010905465
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Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone Market
Fan, Ying; Yang, Chenyu - NET Institute - 2014
We consider a structural model of demand and supply where firms endogenously offer vertically differentiated products and exercise second-degree price discrimination. We apply this model to the smartphone industry and quantify the welfare effects of price discrimination and competition. We use...
Persistent link: https://www.econbiz.de/10010933639
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Digital Rights Management and the Pricing of Digital Products
Park, Yooki; Scotchmer, Suzanne - NET Institute - 2004
Digital products such as movies, music and computer software are protected both by self-help measures such as encryption and copy controls, and by the legal right to prevent copying. We explore how digital rights management and other technical protections a®ect the pricing of content, and...
Persistent link: https://www.econbiz.de/10005459405
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Competing Complements
Casadesus-Masanell, Ramon; Nalebuff, Barry; Yoffie, David B. - NET Institute - 2007
In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to allow for competition between complements on one side of the market. Consider two complements, A and B, where the A+B bundle is valuable only when purchased together. Good A is...
Persistent link: https://www.econbiz.de/10005622751
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The Diffusion of Fixed Broadband: An Empirical Analysis
Lee, Sangwon; Brown, Justin S. - NET Institute - 2008
Broadband infrastructure is a key component of the knowledge economy. Broadband connections on both fixed and mobile networks are becoming an indicator of the knowledge economy. Employing the largest secondary data set, this study examines adoption factors of fixed broadband. The result of...
Persistent link: https://www.econbiz.de/10005622694
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Selling and Leasing Software with Network Externality
Zhang, Jennifer; Seidmann, Abraham - NET Institute - 2006
market, including the impact of network externality, upgrade compatibility, and commitment on pricing in a dynamic …
Persistent link: https://www.econbiz.de/10005622680
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Antitrust Analysis of Mergers with Bundling in Complementary Markets: Implications for Pricing, Innovation, and Compatibility Choice
Choi, Jay Pil - NET Institute - 2003
implications of mergers for innovation incentives and technical tying/compatibility decisions are explored. Welfare implications of …
Persistent link: https://www.econbiz.de/10005622681
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Entrepreneurial Innovations in Network Industries
Norbäck, Pehr-Johan; Persson, Lars; Tag, Joacim - NET Institute - 2008
In this paper, we study entrepreneurial innovations in an industry characterized by network effects. We show that the presence of network externalities tends to make the entrepreneur prefer sale to entry. Moreover, we also show that the incentive to innovate for entry decreases when network...
Persistent link: https://www.econbiz.de/10005622745