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We consider a dynamic platform competition in a market with network externalities. The incumbent platform enjoys a focal position such that consumers expect other consumers to join it, while the entrant platform may enjoy a quality advantage. We examine the effect of an antitrust policy that...
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networks to show how contagion can propagate under different scenarios when the topology of the financial system, the … characteristics of the financial institutions, and the regulations on capital are let vary. First, we benchmark our results using a … simple model of contagion as the one that has been popularized by Gai and Kapadia (2010). Then, we provide a richer model in …
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