compatibility under system product Cournot competition with network externalities. They show that a firm’s optimal strategy is to … set an incompatible system standard, even though perfect compatibility is socially optimal. In this case, a social dilemma …

We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two … full compatibility because it offers more variety that confers a better match with their ideal specifications. However …, firms are likely to choose the minimal compatibility to maximize product differentiation and soften competition. This is in …

This paper studies the ambiguous welfare effects of compatibility in a platform market with endogenous content … provision. Compatibility can be particularly harmful if it leads to reduced content but can be beneficial if content is …

Abstract: We determine the incentives for compatibility provision of firms that produce network goods with different … intrinsic qualities. We consider the case in which both firms have the power to veto compatibility and the case in which none … pricing and consumer decisions. We show that in some equilibria, it is the high quality firm that invests in compatibility …

, the necessary compatibility in the sense that it is not possible to examine the evolution of an enterprise independent of …