Manenti, Fabio; Somma, Ernesto - In: International Journal of the Economics of Business 15 (2008) 3, pp. 301-322
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...