The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility can help moderate this process of rebuilding an installed base. Using a structural model of...

The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility moderates this process of rebuilding an installed base. Using a structural model of the U.S....

If a decision context is completely precise, making good decisions is relatively easy. In the presence of ambiguity, rational decision-making is incomparably more challenging. We understand ambiguous situations as cases, where the decision-maker has imprecise (uncertain or vague) knowledge that...