This paper analyzes the economics of industries where network externalities are significant. In such industries, firms have strong incentives to adhere to common technical compatibility standards so that they reap the network externalities of the whole group. However, a firm also benefits from...

In many developing countries of Africa and Asia, cell phones are used (i) to transfer money across individuals; (ii) to securely self-transport money, and (iii) to save/store money. These banking networks ride on top of wireless telecommunications networks. Traditionally each banking network was...

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...