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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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Citations
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The effect of social influence on bloggers' usage intention

TL;DR: The results show that information quality, system quality and blog function quality, i.e. the technical factors, positively influence bloggers' usage intention.
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Innovation and Strategic Renewal in Mature Markets: A Study of the Tennis Racket Industry

TL;DR: The results indicate that innovators should actively manage various industry participants as an integral part of their strategic renewal efforts, especially when facing rivalry with “me-too” peers.
Posted Content

Designing Central Bank Digital Currencies

TL;DR: In this article, the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security was studied.
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Broadening the concept of international entrepreneurship: 'Consumers as International Entrepreneurs'

TL;DR: In this paper, the authors integrate theories from international business, entrepreneurship, innovation, marketing, and network economics to develop a four-part typology of consumers as international entrepreneurs, which can be used to define a consumer as an international entrepreneur.
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Technology adoption in markets with network effects: Theory and experimental evidence

TL;DR: It is shown that the technology with the lower critical mass implies risk dominance and selection by the maximin criterion, and both payoff dominance and risk dominance explain participants’ choices in the technology-adoption game.
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.