This paper analyzes the effect of innovation clusters on the adoption of a gen- eral purpose technology (GPT) and on firms R&D investment levels in im- perfect information situation. To do this, we developed a theoretical model of vertical relation, described as a four-step game between an...

This work is a trial conceptualization of the concepts related to the technology diffusion process, namely – ‘technological take-off’ and the ‘critical mass’. It demonstrates the ‘step-by-step’ procedure of the identification of the ‘critical mass’, and the interval when the...

Similar to economic growth, the process of technology diffusion may well be approximated by easily distinguishable phases (stages). During the initial phase, the process of diffusion slows, whereas subsequently, under favourable circumstances, it accelerates and proceeds at an exponential growth...

We develop a model for two-sided markets with consumers and producers, who interact through a platform. Typical settings for the model are the market for smartphones with phone users, app producers, and smartphone operating systems; or the video game market with game players, video game...

We compare a discriminatory pricing regime with a non-discriminatory regime in a competitive bottleneck model where content providers endogenously sort into single or multi-homers. We find that consumer prices rise when the share of single-homers increases in the non-discriminatory case, while...

Various forms of social learning and network effects are at work on crowdfunding platforms, giving rise to informational and payoff externalities. We use novel entrepreneur-backer data to study how these externalities shape funding dynamics, within and across projects. We find that backers...

In this paper we study a duopoly where the network e¤ect is nonmonotone and the network can be overloaded. The firms choose prices and locations endogenously, and the agent's utility is influenced by the number of people patronizing the same firm she does. We determine the market equilibrium,...