This paper analyzes decisions on (in)compatibility and product design of two competing hardware suppliers in the presence of network effects. We show that they either establish compatibility and differentiate their variants strongly or maintain incompatibility and locate their variants at the...

This paper analyzes the interplay between compatibility and product design decisions in a symmetric software duopoly with network effects. We show that suppliers do not always offer differentiated product designs and compete within the market. Rather, when ever both the significance of the...

This paper compares various forecasts using panel data with spatial error correlation. The true data generating process is assumed to be a simple error component regression model with spatial remainder disturbances of the autoregressive or moving average type. The best linear unbiased predictor...

This paper proposes maximum likelihood estimators for panel seemingly unrelated regressions with both spatial lag and spatial error components. We study the general case where spatial effects are incorporated via spatial errors terms and via a spatial lag dependent variable and where the...

This paper analyzes the compatibility decision of a dominant hardware supplier. There are two substitutive variants of the hardware component of a hardware-software system, they are horizontally differentiated, and one of the two has a quality advantage. Among other things, we show under what...

This paper proposes a generalized panel data model with random effects and first-order spatially autocorrelated residuals that encompasses two previously suggested specifications. The first one is described in Anselin's (1988) book and the second one by Kapoor, Kelejian, and Prucha (2007). Our...