We study the strategic choice of compatibility between two initially incompatible network goods in a two-stage game … occurs for sufficiently strong network effects. The welfare analysis shows that the equilibrium compatibility regime is … socially inefficient for most levels of the network effects …

This paper investigates how switching costs affect product compatibility and market dynamics in network industries. A … network industries can change the market outcome from compatible products to incompatible products. In the former, price …

services and effective congestion management. Both sides neglect network externalities - the value of broadband to each content … to internalize the network externality. This suggests an alternative approach - a minimum quality of service standard …

We study the strategic choice of compatibility between two initially incompatible network goods in a two-stage game … and the possibility of side payments. With incompatibility, entry deterrence occurs for sufficiently strong network … equilibrium unless side payments are allowed and the network externalities are sufficiently low. When both firms can build a one …