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diffusion of game systems is analyzed by the interaction between console adoption decisions and software supply decisions … expanding software variety becomes more effective later. The paper also finds a degree of inertia in the software market that … does not exist in the hardware market. This observation implies that software providers continue to exploit the installed …
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. Theory suggests that exclusive contracts in vertical relationships between the platform provider and software supplier can … the indirect network effects from software. We find that although network effects are present, the marginal exclusive game … a market structure dominated by one system protected by a hedge of complementary software. Our investigation suggests …
Persistent link: https://www.econbiz.de/10014047965
The market for the exchange of traffic among networks on the Internet has proved to be remarkably efficient and adaptable.While the issue of network neutrality has dominated policy debates in recent years, the evolution of this market has begun to provide answers to many of the questions raised...
Persistent link: https://www.econbiz.de/10014161989
The market for the exchange of traffic among networks on the Internet has proved to be remarkably efficient and adaptable.While the issue of network neutrality has dominated policy debates in recent years, the evolution of this market has begun to provide answers to many of the questions raised...
Persistent link: https://www.econbiz.de/10010602879
We investigate how consumer word of mouth (WOM) develops over time and in turn influences new product adoption. We develop a dynamic aggregate-level model of WOM development and new product diffusion that explicitly captures consumers’ learning of product quality from both marketing...
Persistent link: https://www.econbiz.de/10003930537
supply of new software. We also find that backward compatibility matters most shortly after the introduction of a new …
Persistent link: https://www.econbiz.de/10008779795