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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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How are people enticed to disclose personal information despite privacy concerns in social network sites? The calculus between benefit and cost

TL;DR: It is found that the motivation of relationship management through SNS and the perceived usefulness of SNS for self‐presentation lead users to disclose information but that subjective social norms do not, suggesting that the perceived benefit of behavior enticements should be assimilated into users' own value systems to truly operate as benefit factors.
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Why Do Countries Adopt International Financial Reporting Standards

TL;DR: In this article, the authors study variations in the decision to adopt International Financial Reporting Standards (IFRS) in 102 non-European Union countries and find that more powerful countries are less likely to adopt IFRS and that the likelihood of adoption at first increases and then decreases in the quality of countries' domestic governance institutions.
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A bibliometric review of the innovation adoption literature

TL;DR: In this paper, the authors conducted a bibliometric review and performed bibliographic coupling and co-citation analysis to provide a coherent overview of the theoretical cornerstones as well as recent research trends in the innovation adoption literature.
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The optimal pricing strategy for two-sided platform delivery in the sharing economy

TL;DR: Wang et al. as discussed by the authors formulated a two-sided platform's profit maximization problem by considering network externality, and focused on three pricing strategies, membership-based pricing, transaction-based, and cross subsidization.
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Platform Competition: A Systematic and Interdisciplinary Review of the Literature:

TL;DR: The competition between firms that facilitate transactions and govern interactions between two or more distinct user groups who are connected via a platform competition has been studied extensively over the past three decades as mentioned in this paper.
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.