We analyze duopoly Bertrand competition under network effects. We consider both incompatible and compatible products …. Our main result is that network effects create a fundamental conflict between the maximization of social welfare and …

, which is private in nature, cannot influence expectations regarding the network sizes, inducing the platforms to offer lower … participation fees for developers. Those lower fees increase network benefits for consumers, allowing the platforms to exploit these … benefits through personalized pricing. Personalized prices are higher when the network value for developers is high, benefiting …

firms. Under the proposed information mechanism, consumers share their initial information with the members of their network … characterizing how many different pieces of information a network is likely to contain. This informativeness is crucial for the … results are robust to the introduction of sequential search and network segregation, but an increase in segregation decreases …

The paper studies indirect network effects in a market composed by two incompatible intermediaries that choose price … (short-term issue) in addition to location (long-term issue). The paper first shows that (i) when the network externality is … of the network externality, given that the first entrant locates at the city centre while the follower chooses an extreme …