We study the dependence of incentives for product innovation on the presence, or absence, of parallel trade. The common assertion is that the presence of parallel trade lowers the incentive for product innovation. Our results support this assertion for some parameter values. However, there are...

This paper analyses a two-sided market in which two platforms compete against each other. One side, the advertisers, exerts a negative externality on the ther side, the users. It is shown that if platforms can charge advertisers only, a higher degree of competition for users can lead to higher...

Market mechanism may or may not throw up compatibility in markets for systems where network effect arises due to complementarity of component parts of a system. We consider a game, where, in stage 1, the firms decide whether to standardise on a single technological platform or not and at the...