Lee, Wei-Wei; Huang, Chien-Chieh; Tsai, Shu-Chin - In: Journal of Economics and Management 3 (2007) 1, pp. 49-65
The aim of this study is to investigate how network effects affect the quality and price decisions of firms in a … vertically differentiated market. As network effects increase, high-quality producers tend to raise quality while low-quality … producers lower it. The degree of product differentiation is thus expanded. The price of high-quality products decreases first …