Despite the empirical relevance of advertising strategies in concentrated markets,the economics literature is largely silent on the effect of persuasive advertisingstrategies on pricing, market structure and increasing (or decreasing) dominance.In a simple model of persuasive advertising and...

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...

The working report looks at the actual situation of the German broadband cable market in thecontext of merger control and sector specific regulation. A crucial problem in dealing with thecable market whether in antitrust cases or in the regulatory context is the precise assessmentof the economic...

Die NE hat vielfältige ökonomische Dimensionen. Die wichtigsten sind die Überwindungdes Konjunkturzyklus, die Dynamisierung und Vernetzung der Aktienmärktemit der Realwirtschaft, der Strukturwandel zur Informations- und Wissensökonomie,schließlich die zunehmende Bedeutung von...

The issue of who benefits from innovation is a complex one. The answer is notalways the innovator. It may be other firms that are needed to get an innovationto market (complementary assets), or even those who produce imitations andadapted versions of the original innovation.For the innovator the...

Improving the competitiveness of the UK economyis a national priority. Recent studies – the PorterReport1 and the Department of Trade and Industry(DTI) Innovation Review2 show that the UKlags behind its major competitors in terms ofproductivity. There is a growing consensus thatclosing the...

A growing strand of literature highlights that skilled migration mayfavour growth-enhancing technology transfer, trade and foreign direct in-vestments between the source and the host economies of migrants (net-work effects). We explore a speci…c channel through which the possi-ble "diaspora...

Auf Basis bisheriger Arbeiten greift der Beitrag die Fragestellung einerunternehmenszentralen Koordination und Anreizsetzung zur Realisierung von Netzwerkeffektenbei dezentralen MW-Entscheidungen auf. Hierfür wird ein Optimierungsalgorithmus entwickelt,der anhand dokumentierter Daten bzgl. der...

We analyse firms' incentives to provide two-way compatibility between two network goodswith different intrinsic qualities. We study how the relative importance of verticaldifferentiation with respect to the network effect influences the price competition as well as thecompatibility choice. The...

Der Beitrag geht zunächst den ursprünglichen Motiven des Allfinanzkonzeptes nach und kommt zum Ergebnis, dass diese Motive auf der Prämisse generischer Verbundeffekte in der Kunden- und Vertriebssphäre beruhten und dass diese Prämisse angesichts veränderter Marktbedingungen kaum (noch) zu...