The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility moderates this process of rebuilding an installed base. Using a structural model of the U.S....

The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility can help moderate this process of rebuilding an installed base. Using a structural model of...

In knowledge-intensive industries, targets often get acquired for their human capital. However, acquisitions are also known to trigger employee exit, which may diminish the very asset acquirers are trying to get under their control. We argue that acquisitions disrupt the complementarity between...

Multihoming – the decision to design a complement to operate on multiple platforms – is becoming increasingly common in many platform markets. Perceived wisdom suggests that multihoming is beneficial for complement providers as they expand their market reach, but it reduces differentiation...