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more important when there is an increase in network effects. A consequence is higher innovation incentives under an … reducing bidding competition, thereby also reducing acquisition prices and innovation incentives. …
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Products as varied as software, credit cards, and even coffee makers are influenced by network effects whereby the product's value is contingent upon the number of people using it. In turn, markets for these products offer lucrative returns to managers who can leverage the dynamics in their...
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option of selling to an incumbent increases the innovation incentives for entrepreneurs when the network effects are strong … not necessarily restrict the innovation incentives and that network effects promote acquisitions over entry. …
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more important when there is an increase in network effects. A consequence is higher innovation incentives under an … reducing bidding competition, thereby also reducing acquisition prices and innovation incentives. …
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