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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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Incumbent Performance in the Face of a Radical Innovation: Towards a Framework for Incumbent Challenger Dynamics

TL;DR: In this paper, the authors identify, collate and analyze several constructs from three categories; the industry, the firm and the challenge, discuss the interactions among these constructs and show that incumbent failure or success can be better understood when these constructs are concurrently analyzed.
Journal ArticleDOI

Electronic Word-of-Mouth in Online Environments

TL;DR: It was showed that the network structure affects innovation adoption timing in the electronic communication environment, as a centralized network structure leads towards early adoption and as tie strength and adoption timing are related.
Journal ArticleDOI

Identifying Formal and Informal Influence inTechnology Adoption with Network Externalities

TL;DR: In this article, the authors examine which adopter characteristics matter and find that adoption by either managers or workers in boundary spanner positions has a large impact on the adoption decisions of employees who wish to communicate with them.
Book ChapterDOI

Information security economics - and beyond

TL;DR: The promise of this research program is a novel framework for analyzing information security problems - one that is both principled and effective.
Journal ArticleDOI

Product intelligence: its conceptualization, measurement and impact on consumer satisfaction

TL;DR: In this article, the authors conceptualized product intelligence and described a procedure to measure the construct, and explored the link of product intelligence to consumer satisfaction through the innovation attributes of relative advantage, compatibility, and complexity.
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.
Journal ArticleDOI

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.