Showing 1 - 10 of 3,103
Persistent link: https://www.econbiz.de/10014304659
Compatibility of network products is an important issue in markets for communication technology as well as hard- and … product compatibility. We present a strategic two-stage game of two firms deciding strategically or commonly on the degree of … product compatibility in the first stage and on prices in the second stage. Indeed, partial compatibility constitutes a …
Persistent link: https://www.econbiz.de/10012602284
Persistent link: https://www.econbiz.de/10011742129
Using quarterly data of 58 countries, this paper provides empirical evidence that mobile phone diffusion from 2007 to 2009 is positively influenced by international network effects. Direct and indirect network effects are a result of the international standadization of telecommunication...
Persistent link: https://www.econbiz.de/10011433040
We show that the entry of a second firm in a horizontally differentiated market (ala Hotelling) may harm consumers as prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly which is located at the center of the market. When a...
Persistent link: https://www.econbiz.de/10011523708
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 …
Persistent link: https://www.econbiz.de/10010424907
compatibility and can engage in bundling. We consider the impact of merger on prices, investment and consumer surplus. We also …
Persistent link: https://www.econbiz.de/10012001659
This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency...
Persistent link: https://www.econbiz.de/10008666960
We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...
Persistent link: https://www.econbiz.de/10003944707
It is increasingly observable that competitors in different industries share customer data, which can be used for targeted pricing. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such sharing and its ensuing welfare effects. We...
Persistent link: https://www.econbiz.de/10009558236