This paper examines tipping in the Armstrong (2006) two-sided market model. By adding simple cost asymmetries to the original model, we show that the model is quite robust to dierences in network size and deviations from 50-50 market share. It well represents situations where asymmetries...

In platform-component systems with indirect network effects, some 'must-have' components are so popular with consumers that they create large, discrete indirect network effects when they become available on a platform. For example, ESPN is a must-have component of cable TV platforms. This paper...

In the short run, constraints in the electricity transmission system may give market power to generators. This paper examines whether the constraints themselves are a long-run equilibrium outcome in a competitive environment. We show that independent transmission companies and generators can...

The recent growth of the Internet is creating markets for broadband telecommunications networks. In the past, virtually all such "infrastructure" networks have been subject to government regulation. Two reasons advanced for this market intervention are (i) such networks constitute a natural...

“Network neutrality” and “open access” are two policies designed to preserve openness on the Internet. Open access mandates openness of conduits (e.g. television cable and DSL) to service providers (e.g. America Online), while network neutrality mandates openness to advanced content...

Broadband Internet involves two vertical relationships: the Internet Service Provider (ISP) requires both a physical conduit (e.g. telephone or cable television lines) and content. The ISP–conduit relationship has been subject to controversial unbundling regulation, but no such rules apply to...