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We study the strategic choice of compatibility between two initially incompatible network goods in a two-stage game played by an incumbent and an entrant firm. Compatibility may be achieved by means of a converter. We derive a number of results under different assumptions about the nature of the...
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We examine the preferences of a foreign firm and a local government over two modes of foreign direct investment: de novo entry and acquisition of the domestic incumbent. Two crucial features of the model are network externalities and partial incompatibility between the domestic and the foreign...
Persistent link: https://www.econbiz.de/10014053211
We study the strategic choice of compatibility between two initially incompatible network goods in a two-stage game played by an incumbent and an entrant firm. Compatibility may be achieved by means of a converter. We derive a number of results under different assumptions about the nature of the...
Persistent link: https://www.econbiz.de/10014029696
This paper examines the preferences of a foreign firm and a welfare maximizing host country government over two modes of foreign direct investment (FDI): de novo entry by the foreign firm and acquisition of the domestic incumbent. Two crucial features of the model are the presence of network...
Persistent link: https://www.econbiz.de/10014028675
Over the last decades, technological progress has brought about a multitude of standardization problems. For instance … firms to influence consumers' expectations. Consisting of three models on various aspects of standardization and … problems such as 'Inter-Technology vs. Intra-Technology Competition' and 'Standardization of Nascent Technologies'. …
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