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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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Interaction of Public and Private Standards in the Food Chain

TL;DR: In this article, the authors present an exploratory examination of the ways in which public and private food quality standards interact with each other in modern food systems and discuss a number of issues arising from the contiguous development of public quality standards.
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Network externalities and government restrictions on satellite broadcasting of key sporting events.

TL;DR: In this article, the authors argue that transmission on BSkyB would reduce consumer surplus due to network externalities, and that the best arrangement would combine terrestrial broadcasting of the main event with subscription broadcasting of aspects that appeal only to minority tastes.
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Competitive pricing strategies in social networks

TL;DR: In this paper, the authors study pricing strategies of competing firms selling heterogeneous products to consumers and determine the optimal network structure and compare uniform pricing and discriminatory pricing from the perspectives of firms and consumers.
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Network externalities and long-run market shares

TL;DR: In this paper, the authors study a dynamic duopoly model with network externalities and compare the market outcome to a planner, showing that the potential inefficiency is non-monotonic in the strength of the network effect, being most likely for intermediate levels.
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What makes MOOC users persist in completing MOOCs? A perspective from network externalities and human factors

TL;DR: The findings indicate that users' persistence in completing MOOCs was a function of network benefit, user preference, and motivation to achieve, and the duration of MOOC usage made a significant difference in the effect of network externalities.
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.