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We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...
Persistent link: https://www.econbiz.de/10010265013
We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...
Persistent link: https://www.econbiz.de/10003726117
Persistent link: https://www.econbiz.de/10009553931
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
We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...
Persistent link: https://www.econbiz.de/10012724212
Persistent link: https://www.econbiz.de/10013264961
This paper studies competition in the German market for mobile telecommunications, motivated by recent suggestions that T-Mobile and Vodafone possess a position of collective dominance. Allegedly, their position of joint dominance is secured through a combination of first-mover advantages and...
Persistent link: https://www.econbiz.de/10010302570
the pre-paid market. In addition, evidence of fixed to mobile traffic substitution is provided for consumers that use pre …
Persistent link: https://www.econbiz.de/10010303799
This paper analyzes how competition works in mobile telecommuncations markets and, bases on this analysis, we discuss whether regulatory intervention in mobile telephone markets is justified from an economic perspective. Starting point of our analysis is the observation that an evaluation of...
Persistent link: https://www.econbiz.de/10010263392
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/10010265012