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We estimate the demand for a videocalling technology in the presence of both network effects and heterogeneity. Using a unique dataset from a large multinational firm, we pose and estimate a fully dynamic model of technology adoption. We propose a novel identification strategy based on...
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We consider network effects in the monopolistically competitive model of trade developed by Melitz and Ottaviano (2008). We show that a larger network effect intensifies competition by allowing more-productive firms to raise prices and earn higher profits, but forcing less-productive firms to...
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work, a standardization framework based on an analysis of deficiencies of network effect theory and a game theoretic … network behaviour (specific diffusion patterns) can be explained and many findings from traditional network effect theory can … basis, solution strategies for standardization problems are developed, and a methodological path towards a unified theory of …
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Enormous growth and rapid changes challenge business strategy and the economic theory of the online industry. In the …
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Few would doubt the potential of information technology to connect individuals, firms and organisations. Whether this will actually lead to the integration of markets and societies is a different issue. The articles collected in this book shed light on crucial considerations for the success of...
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in the world, or how electricity suppliers can compete with each other if there is only one electric supply line passing …
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