Market mechanism may or may not throw up compatibility in markets for systems where network effect arises due to complementarity of component parts of a system. We consider a game, where, in stage 1, the firms decide whether to standardise on a single technological platform or not and at the...

The existing literature suggests that an incumbent monopolist supplier of a network good can successfully deter entry by increasing its installed base, which plays a role similar to that of the commitment value of investment in capacity. In this paper, we consider a market with network...

In this paper we develop a model of licensing a new product technology of a network good. The new technology improves the quality of the network good and is protected by a patent. In such a context we find that a standard auction mechanism can efficiently allot the new technology under both...