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This paper analyzes the compatibility decision of a dominant hardware supplier. There are two substitutive variants of …
Persistent link: https://www.econbiz.de/10011097491
can be analysed by the concepts of network externalities, compatibility and standardization. This report disseminates …
Persistent link: https://www.econbiz.de/10005545952
This paper analyzes the compatibility decision of a dominant hardware supplier. There are two substitutive variants of …
Persistent link: https://www.econbiz.de/10010435574
In this paper, we study entrepreneurial innovations in an industry characterized by network effects. We show that the 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...
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We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two … full compatibility because it offers more variety that confers a better match with their ideal specifications. However …, firms are likely to choose the minimal compatibility to maximize product differentiation and soften competition. This is in …
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