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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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Global democracy: in the beginning

TL;DR: The idea of a "one person one vote for all affected by the decisions" model of global democracy was first proposed by as mentioned in this paper, with the ideal being "one-person one-vote for all those affected by decisions" as in a second popularly apportioned chamber of United Nations.

Setting Compatibility Standards: Cooperation or Collusion?

TL;DR: In this article, the authors describe the process by which firms cooperate to establish product compatibility and interface standards, and study the impact such standards have on market competition, and offer some general suggestions for the proper antitrust treatment of cooperation to set standards, including the use of cross-licenses and patent pools.

Using e-cash in the New Economy: An economic analysis of micro payments systems

TL;DR: In this paper, the authors outline the evolution of electronic payment systems, leading to an analysis of the essential characteristics of e-cash, and microeconomic / macroeconomic implications of the development of E-cash.
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Determinants of early conformance with information security policies

TL;DR: The results show support for all the proposed relationships, except that subjective norm does not affect intentions, which is explained by the leading role of early conformers, which highlights the importance of context-specific theorizing by researchers.
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The role of complementary products on platform adoption : Evidence from the video console market

TL;DR: In this article, the authors examined the influence of complementary product portfolios on the adoption of platforms by individuals and found that decisions on complementary products act as strategic drivers of adoption in platform-based markets.
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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.