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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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Network Effects and Technology Licensing with Fixed Fee, Royalty, and Hybrid Contracts

TL;DR: In this paper, the authors explore the impact of network effects on the licensing choice and find that a fixed-fee license is optimal with strong network effects, while the optimal license uses a royalty rate either alone or in combination with a fee.
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Appropriation and appropriability in open source software

TL;DR: In this paper, the authors explore how firms appropriate returns from innovations that are created outside the boundaries of firms and in the public domain, using the case of open source software (OSS).
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Standardization revisited

TL;DR: This study reviews standardization research in terms of the process of standardization, innovation, and the demand-supply perspective to draw implications that standards will be one of the important tools for national economic growth and for unconventional strategies of businesses.
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Technology Standards and Standard Setting Organizations: Introduction to the Searle Center Database

TL;DR: This database combines comprehensive information on technology standards, SSO membership, and SSO characteristics in a format designed for economic research and describes how to combine these data with other new databases on standard‐related patents and standardization processes at 3GPP.
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Explaining institutional change: : policy areas, outside options, and the Bretton woods institutions

TL;DR: In this article, the authors propose and test a theoretical framework that explains institutional change in international relations, showing that institutions facing severe competition will quickly reflect changes in underlying state interests and power.
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.