Farrell, Joseph; Klemperer, Paul - In: Handbook of industrial organization : volume 3, (pp. 1967-2072). 2007
Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even … (or brand loyalty), or over others with network effects. Firms compete ex ante for this ex post power, using penetration … magnifies incumbency advantages. With network effects, established firms have little incentive to offer better deals when buyers …