of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by … acquisition relative to entry. A policy enforcing strict compatibility leads to more entry, but can be counterproductive by …

of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by … acquisition relative to entry. A policy enforcing strict compatibility leads to more entry, but can be counterproductive by …

In industries with network effects, incumbents' installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … not necessarily restrict the innovation incentives and that network effects promote acquisitions over entry. …

presence of network externalities tends to make the entrepreneur prefer sale to entry. Moreover, we also show that the … incentive to innovate for entry decreases when network effects become stronger, whereas there is an increase in the incentive … of increasing entry by entrepreneurs. However, this may come at the cost of reducing the research intensity by reducing …