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Network externalities, competition, and compatibility

Michael L. Katz
- 01 Jan 1985 - 
- Vol. 75, Iss: 3, pp 424-440
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This article is published in The American Economic Review.The article was published on 1985-01-01 and is currently open access. It has received 6100 citations till now. The article focuses on the topics: Network economics.

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Strategic action in network industries: an empirical analysis of the European mobile phone industry

TL;DR: In this paper, the authors investigated the strategic moves of European mobile phone operators during the early development of the industry and found that market penetration, concentration, and time evolution drive the likelihood of inter-firm cooperation and the types of strategic action taken by firms in this network industry.
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A Short Survey of Network Economics

TL;DR: In this paper, a variety of topics related to network economics are surveyed, including consumer demand under network effects, compatibility decisions and standardization, technology advances in network industries, two-sided markets, information networks and intellectual property, and social influence.
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Innovation dynamics and environmental technologies: the emergence of fuel cell technology

TL;DR: In this paper, the authors explore the dynamics of environmental innovation using the case of Ballard Power System's Proton Exchange Membrane (PEM) fuel cell technology and question the environmental implications and the role of government policy with regard to such technologies.
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Lock-in and path dependence: an evolutionary approach to eco-innovations

TL;DR: In this paper, an overview of the evolutionary approach to eco-innovations with particular emphasis on the role of lock-in and path dependence is presented, focusing on the processes of radical change and the transition of technological systems that require the co-evolution of technology, firms, institutions and the society as a whole.
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Congestion and network externalities in the short run pricing of information system services

TL;DR: In this article, the authors provide a complete model for computing an optimal transfer price which corrects several existing problems in information system service valuation, such as the tendency to overprice and underutilize internal services.
References
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Monopoly, quality, and regulation

TL;DR: In this paper, the authors argue that under regimes of monopoly and monopolistic competition, product characteristics (which are often endogenous variables) are not usually optimally set under the pressure of market forces, and that regulation is also beset with difficulties when price and quality are decision variables.
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Critical Mass and Tariff Structure in Electronic Communications Markets

TL;DR: In this article, the authors developed an economic model that determines both the required critical mass size for startup and the ultimate expansion level of such a system and evaluated the effects of different pricing structures for the service under the assumption that users maximize benefits minus cost and a monopoly supplier maximizes profit.
Posted Content

Tax Analysis in an Oligopoly Model

TL;DR: In this article, the authors use the conjectural variations model of oligopoly to analyze the way in which the incidence of a tax depends upon the pattern of firm interaction and show that the errors that arise in excess burden calculations when incorrect assumptions on market structure are made.
Journal ArticleDOI

Tax Analysis in an Oligopoly Model

TL;DR: In this paper, the authors use the conjectural variations model of oligopoly to analyze the way in which the incidence of a tax depends on the pattern of firm interaction and show that the errors that can arise in excess burden calculations when incorrect assumptions on market structure are made.