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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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Indirect Network Effects in New Product Growth

TL;DR: In this paper, the authors show that indirect network effects, as commonly operationalized by prior literature, are weaker than expected from prior literature; in most markets they examined, hardware sales leads software availability, while the reverse almost never happens, contradicting existing beliefs.
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Network effects in technology acceptance: Laboratory experimental evidence

TL;DR: This research analyzes network effects in technology acceptance by reproducing a particular type of technology acceptance process in a laboratory experiment, controlling for user network size and testing its influence on user perceptions and, ultimately, on acceptance decisions.
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Realizing smart meter connectivity : Analyzing the competing technologies Power line communication, mobile telephony, and radio frequency using the best worst method

TL;DR: Studies of a subcomponent of the smart grid for a standard means of interface between the smart meter and the concentration point for collecting meter data show that experts believe that Power line communication has a high chance of becoming dominant and that the most important factor affecting standard success is technological superiority.
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Platform-based Innovation Management: Directing External Innovational Efforts in Platform Ecosystems

TL;DR: In this paper, the authors explore and categorize control mechanisms leading platform owners in the ICT industry have implemented to steer external complementary innovation efforts, and develop an overall platform-based innovation management process.
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Beyond the Target Customer: Social Effects of Customer Relationship Management Campaigns

TL;DR: In this paper, the authors demonstrate that in business settings characterized by network externalities, a CRM campaign that is aimed at changing the behavior of specific customers propagates through the social network, thereby also affecting the behaviour of nontargeted customers.
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.