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Network externalities, competition, and compatibility
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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.read more
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Homogeneous Platform Competition with Endogenous Homing
TL;DR: In this paper, the authors develop a model for two-sided markets with consumers and producers, who interact through a platform, and consider competition between two homogeneous platforms that allow consumers and firms to optimize with respect to how they home, i.e. they allow both individual consumers and individual producers to multi-home or single-home depending on whether it is optimal based on their type.
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Advertising and Coordination
Kyle Bagwell,Garey Ramey +1 more
TL;DR: In this article, the authors provide a theoretical explanation for Benham's empirical association of the ability to advertise with lower prices and larger scale, and show that advertising becomes necessary for optimal coordination when the identity of the efficient firm is uncertain.
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A study on the reciprocal relationship between user perception and retailer perception on platform-based mobile payment service
Jiyoon Lee,Min Ho Ryu,Daeho Lee +2 more
TL;DR: In this paper, the authors analyzed the factors affecting financial technology adoption from consumer and retailer perspectives respectively, and suggested an integrated model in which each adoption influences each other's demand from the perspective of the two-sided market.
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"Why pay premium in freemium services?" A study on perceived value, continued use and purchase intentions in free-to-play games
TL;DR: Support for the "Demand Through Inconvenience" -hypothesis is found, indicating that the higher the enjoyment of the freemium service, the lower the intentions to purchase premium content but higher intention to use the service overall.
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Costs, benefits and pricing of dedicated container terminals
TL;DR: The paper shows that such losses could be even higher in the presence of direct (club effect) or indirect (hardware/software paradigm) externalities and that the choice of DCT is similar to the access pricing of a bottleneck in a network industry.
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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
Shmuel S. Oren,Stephen A. Smith +1 more
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.
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Tax Analysis in an Oligopoly Model
Michael L. Katz,Harvey S. Rosen +1 more
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.
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Tax Analysis in an Oligopoly Model
Michael L. Katz,Harvey S. Rosen +1 more
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.