efficient network maximizing social welfare, and find that the efficient graph is either empty, complete or shows a strong core … counterfactual analyses, taking into account that the network and production can dynamically adjust to shocks or policy interventions ….6%. Our study further reveals that when ignoring the network structure the impact of firm exit or mergers is significantly …

This paper analyzes the impact of network externalities on R&D competition between an incumbent and a potential entrant …. The analysis shows that the incumbent always invests more than the entrant in the development of higher quality network … the presence of network externalities. By choosing compatible network goods, firms do not necessarily reduce the R …

This paper studies the incentives to undertake uncertain R&D initiatives in a dynamic duopoly network industry. It is … shown that network externalities positively affect the incentives to invest in R&D. In the model, competition resembles a …. Moreover, network externalities have an important impact in the dynamic evolution of the industry. Although in the long-run a …

late or no adoption. This is due to a delayed first-mover benefit which stems from a network effect that benefits the …