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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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Opening Platforms: When, How and Why?

TL;DR: Factors that motivate decisions to open or close mature platforms are reviewed, including end users and complementors, and platform provider and sponsor levels.
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Competition Between Networks: A Study of the Market for Yellow Pages

TL;DR: In this article, the importance of network effects in the market for Yellow Pages was estimated and it was shown that internalizing network effects would significantly increase the surplus of a more competitive market is preferable.
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Institutional Entrepreneurship A Coasian Perspective

TL;DR: This article argued that the prevailing institutional structures of the economic system produce a particular spectrum of entrepreneurial activity and argued that these institutions themselves are not the primary drivers of entrepreneurship, but rather the agents themselves.
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Network effects and competition: an empirical analysis of the home video game industry

TL;DR: In this article, the authors empirically study the impact of a unit increase in network size on demand in the 16-bit home video game industry and find strong evidence that network effects are asymmetric between the competitors.
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Informational cascades and software adoption on the internet: an empirical investigation

TL;DR: In this paper, the authors empirically examine informational cascades in the context of online software adoption and find that users' choices of software products exhibit distinct jumps and drops with changes in download ranking.
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.