"Destructive Creation" is the deliberate introduction of new, perhaps improved generations of durable goods that destroy, directly or indirectly, the usage value of units previously sold inducing consumers to repeat their purchase. This paper discusses this practice by a single seller in an...

Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in efficiency, and gives vendors lucrative ex...

Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in efficiency, and gives vendors lucrative ex...

We examine the extent to which the network effects that lead to the adoption of an online social platform are local. Focusing on the fantasy sports market in the US, we find that the size of a county's existing user base on the platform significantly impacts the number of new users who join the...

This paper investigates the scope of indirect network effects in the home video game industry. We argue that the increasing prevalence of non-exclusive software gives rise to indirect network effects that exist between users of competing and incompatible hardware platforms. This is because...

The introduction of a new product generation forces incumbents in platform markets to rebuild their installed base of complementary products. Using three different datasets on the US market for video game consoles, we show that incumbents can to some extent substitute for rebuilding their new...

The introduction of a new product generation forces incumbents in platform markets to rebuild their installed base of complementary products. Using three different datasets on the US market for video game consoles, we show that incumbents can to some extent substitute for rebuilding their new...

The introduction of a new product generation forces incumbents in network industries to rebuild their installed base to maintain an advantage over potential entrants. We study if backward compatibility moderates this process of rebuilding an installed base. Using a structural model of the U.S....

Using the film industry, we show how the content of information goods changes the substitutability or complementarity effects of copyright infringement. Leveraging the quasi-random timing of the appearance of a high-quality pirated movie after its release in-theaters, we find for...