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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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Networks for the commercialization of innovations: A review of how divergent network actors contribute

TL;DR: In this article, the authors present a conceptual synthesis on network actors' contribution potential to commercialization and identify four modes of contribution: customers and users, distributors, complementaries, suppliers, investors, associations, public organizations, and policy makers and regulators.

Bid Together, Buy Together: On the Efficacy of Group-Buying Models in Internet-Based Selling.

TL;DR: In this article, the authors explore a variant of the typical dynamic pricing mechanism, in which buyers and sellers actively engage in the price discovery process, that emphasizes the power of group buying.
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Critical factors to bioenergy implementation.

TL;DR: In this article, the authors present a framework for the analysis of both existing and projected bioenergy market potential, using economic concepts and models from transaction cost theory and industrial organization, which can be used for assessments of the potential for market growth of different bioenergy systems by decision makers in administration and industry.
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Entry, Standards and Competition: Firm Strategies and the Diffusion of Mobile Telephony

TL;DR: In this article, the effects of a country's regulatory setting and competitive environment on the performance of second-generation (2G) mobile on telecommunication were studied, and the effect of non-random selection arising from cross-country differences in the timing of the commercialization of new technologies was investigated.
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Platform Competition in Two-Sided Markets: The Case of Payment Networks

TL;DR: In this paper, the authors construct a model to study competing payment networks, where networks offer differentiated products in terms of benefits to consumers and merchants, and find that competition unambiguously increases consumer and merchant welfare.
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.