This paper reinvestigates the well-known claim by Economides (1996) that the network effects can lead a monopolist to give away its technology for free. This so-called 'open' strategy is likely to be adopted when marginal network effects are strong but not too strong relative to marginal price...

Policymakers face an increasing number of questions regarding whether markets efficiently choose technological standards. In this essay I survey the economic literature regarding standards, focusing on arguments that markets move between standards either too slowly or too swiftly.

We analyze competition between two horizontally differentiated network providers. New technologies help the providers to collect consumer-specific information, and such technologies increase the providers' ability to use price discrimination. One example is the mobile providers' choice of...

The conventional wisdom is that indirect network effects, unlike direct network effects, do not give rise to externalities. In this paper we show that under very general conditions, indirect network effects lead to adoption externalities. In particular we show that in markets where consumption...

In network industries, we often observe frequent upgrades of existing products as well as delayed introductions of new products. In order to explain these contrasting phenomena, this paper examines a durable-good monopolist's incentive for R&D in- vestment in new product development in a market...

В статье проводится обзор и сравнительный анализ многосторонних сетевых платформ с точки зрения математического моделирования. Рассматриваются перспективные...

В статье проводится обзор и сравнительный анализ многосторонних сетевых платформ с точки зрения математического моделирования. Рассматриваются перспективные...

Networks are thought to have an important impact on individuals’ access to labor markets. Yet, it is a challenging task to identify network effects because the functioning of networks relies heavily on unobservables that may be correlated with other productivity-related characteristics. In...

Following the Internet’s widespread adoption, much economic work has studied ‘online platforms’: firms that mainly interact with consumers in cyberspace. This article surveys such work, focusing on the ways in which traditional economic models have been adapted to incorporate...

This paper develops a novel theory of trade in a global supply chain. We expand on a monopolistic competition trade model. Countries produce both intermediate and final goods that are sold domestically or, incurring country-pair specific trade costs, internationally. This links countries in a...