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This paper measures the impact of vertically integrated and exclusive software on industry structure and welfare in the sixth-generation of the U.S. videogame industry (2000-2005). I specify and estimate a dynamic model of both consumer demand for hardware and software products, and software...
Persistent link: https://www.econbiz.de/10014048238
This paper proposes methods for identifying indirect network effects with dynamically optimizing consumers purchasing a durable hardware good and associated software. We apply this model to a data drawn from the DVD player and titles markets. We observe model-level prices, sales and...
Persistent link: https://www.econbiz.de/10014193164
The new growth theory considers knowledge to be a decisive engine of economic growth. More precisely, knowledge is not …
Persistent link: https://www.econbiz.de/10014198374
Understanding the way in which knowledge is technically produced and transferred, and how its diffusion path can be characterized is of fundamental importance for the performance of an economy. Although this fact seems to be plausible ex ante, the relevant literature so far has paid less...
Persistent link: https://www.econbiz.de/10014199690
I model dynamic product design along price and non-price dimensions by a firm in a market with positive network externalities between consumers. In the case of a usage fee, I provide conditions under which the steady state (SS) is unique and show that the introductory price is negative and...
Persistent link: https://www.econbiz.de/10014141806
In this paper we apply a general model of one-sided and two-sided platform businesses to a collusive framework which we model as joint profit maximization. We have a particular interest in how the social loss and other metrics depend on the strength of the network (direct or indirect) effect. We...
Persistent link: https://www.econbiz.de/10013221241
We present a model of dynamic monopoly pricing for a good that displays network effects. In contrast with the standard notion of a rational-expectations equilibrium, we model consumers as boundedly rational, and unable either to pay immediate attention to each price change, or to make accurate...
Persistent link: https://www.econbiz.de/10014027236
Financial institutions are interconnected directly by holding debt claims against each other (the network channel), and they are also bound by the market liquidity in selling assets to meet debt liabilities when facing distress (the liquidity channel). The goal of our study is to investigate how...
Persistent link: https://www.econbiz.de/10013051288
Understanding the way in which knowledge is technically produced and transferred, and how its diffusion path can be characterized is of fundamental importance for the performance of an economy. Although this fact seems to be plausible ex ante, the relevant literature so far has paid less...
Persistent link: https://www.econbiz.de/10003914239
We characterize dynamic rational addiction to a harmful product by an informed individual who is connected to a network of users of the addictive product. The network harms the individual and imposes peer pressure on her to consume the addictive product. The network contributes to the state...
Persistent link: https://www.econbiz.de/10012836396