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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 entry deterrence: Complementary products as installed base

TL;DR: In this article, the authors assess the effect of hardware control of software provision in markets in which the consumption benefit of a durable or hardware good is a function of the variety of complementary products or software available.
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"Build-or-Buy" Strategies in the Local Loop

TL;DR: In this paper, the authors provide a dynamic model to study how the presence of the option to "buy" the incumbent local exchange carrier's (ILEC) facilities via local loop unbundling affects the competitive local exchange carriers' (CLECs) incentives to "build" alternative infrastructures.
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Reducing the level of switching costs in mobile communications: The case of Mobile Number Portability

TL;DR: In this paper, a hierarchical Bayes model is proposed to measure switching costs at the customer level and to investigate the impact of mobile number portability (MNP) on them.

Increasing Returns and Firm Performance: An Empirical Study

TL;DR: In this article, a proefschrift gaat over increasing returns: positieve feedbackeffecten in markten and bedrijven Positieve feedback betekent dat success leidt tot vermeerderd succes and falen tot vermijden.
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.