as well as the ensuing bargaining. Theory predicts that link costs lead to less competitive networks, with one link … for the first but not the second prediction. 2-link networks form less frequently when there are link costs. Given that a …

This paper analyzes the economics of industries where network externalities are significant. In such industries, firms … have strong incentives to adhere to common technical compatibility standards, so that they reap the network externalities … find that the presence of network externalities dramatically affects conventional welfare analysis, as total surplus in …

due to consumption externalities. Finally, with perfectly flexible prices the ranking might increase the market power of …

consumers improves the deals available to all consumers in the market (the case of search externalities), and when the non …-savvy fund generous deals for all consumers (ripoff externalities). I also discuss when the two groups of consumers have aligned …

, and thus negative externalities. When investing in fast trading technologies, institutions do not internalize these … externalities. Accordingly, they overinvest in equilibrium. Completely banning fast trading is dominated by offering two platforms …