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Platform interconnection and quality incentives

Salim, Claudia - 2008

invest in Platform quality. We find that interconnection is aa means to reduce externalities one side exerts on the other. It … changes the mode of competition for subscribers and resultsin higher subscription prices. Further, even though interconnection … quality costs it will lead to asymmetric networks. Therefore, interconnection without coordinated investment activities is …

Persistent link: https://www.econbiz.de/10003797957

Compatibility and Proprietary Standards : The Impact of Conversion Technologies in IT Markets with Network Effects

Liu, Charles Z.; Gal-Or, Esther; Kemerer, Chris F.; … - 2014

In markets that exhibit network effects, the presence of digital conversion technologies provides an alternative mechanism to achieve compatibility. This study examines the impact of conversion technologies on market equilibrium in the context of sequential duopoly competition and proprietary...

Persistent link: https://www.econbiz.de/10014051431

Platform standards, collusion and quality incentives

Salim, Claudia - 2009

This paper examines how quality incentives are related to the interoperability of competing platforms. Platforms choose whether to operate standardised or exclusively, prior to quality and subsequent price competition. We find that platforms choose a common standard if they can coordinate their...

Persistent link: https://www.econbiz.de/10003848849

Biased-manager hiring in a market with network externalities and product compatibility

Huang, Shih-Hao; Tsai, Chien-Shu; Lee, Jen Yao; Tsai, … - In: Games 16 (2025) 2, pp. 1-8

This paper studies biased-manager hiring in a market with network externalities and product compatibility. We show that the aggressivity of a biased manager has a non-linear relationship with product compatibility; however, since both owners want to hire aggressive managers, product...

Persistent link: https://www.econbiz.de/10015408248

Regulating Quality by Regulating Quantity : A Case against Minimum Quality Standards

Boccard, Nicolas; Wauthy, Xavier Yves - 2009

We show in a simple model of entry with sunk cost, that a regulator prefers limiting the output, or capacity, of the incumbent firm rather than imposing a "Minimum Quality Standard" in order to help the entrant to provide high quality. As a by-product, our analysis makes a contribution to the...

Persistent link: https://www.econbiz.de/10014213065

Competition in Certification Markets

Fazeli, Nima - 2021

This paper presents a theoretical model of competition between information intermediaries applied to credit rating industry. Sellers rely on intermediaries to credibly communicate their quality to buyers. Intermediaries are strategic and compete in fees as well as their certification standards...

Persistent link: https://www.econbiz.de/10013314253

Bertrand competition in markets with network effects and switching costs

Suleymanova, Irina; Wey, Christian - 2011

We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the ratio of switching costs to network effects, our modelerates four different market patterns: monopolization and market sharing which can be either monotone or alternating. A...

Persistent link: https://www.econbiz.de/10010305915

On the (Mis-) Alignment of Consumer and Social Welfare in Markets with Network Effects

Suleymanova, Irina; Wey, Christian - 2008

We analyze duopoly Bertrand competition under network effects. We consider both incompatible and compatible products. Our main result is that network effects create a fundamental conflict between the maximization of social welfare and consumer surplus whenever products are incompatible. While...

Persistent link: https://www.econbiz.de/10014217962

Standards Coalitions Formation and Market Structure in Network Industries

Economides, Nicholas; Skrzypacz, Andrzej - 2008

We discuss the formation of technical standards platforms in industries with network externalities where firms are free to choose their degree of technical compatibility with competitors. In our model, firms choose affiliation to a technical standards coalition in the first stage of a game, and...

Persistent link: https://www.econbiz.de/10014031205

Bertrand competition in markets with network effects and switching costs

Suleymanova, Irina; Wey, Christian - 2011

We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the ratio of switching costs to network effects, our model generates four different market patterns: monopolization and market sharing which can be either monotone or alternating. A...

Persistent link: https://www.econbiz.de/10009236846