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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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Consumer adoption of technological innovations: Effects of psychological and functional barriers in a lack of content versus a presence of content situation

TL;DR: In this article, the authors investigate barriers in the consumer adoption process of technological innovations under different contingencies, focusing on barriers impeding adoption of technologies characterized by high incompatibility and high uncertainty.
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Selection of biomass thermochemical conversion technology in the Netherlands: A best worst method approach

TL;DR: In this article, three types of technologies are currently fighting the battle for standard dominance: combustion, pyrolysis, and gasification, and the relative importance (weights) of these factors were calculated.
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An Equilibrium Valuation of Bitcoin and Decentralized Network Assets

TL;DR: In this article, the authors address the valuation of Bitcoin and other blockchain tokens in a new type of production economy, where contributors to the DN trust (miners) receive units of the same asset used by consumers of DN services.

Customer base management and profitability in information technology industries

TL;DR: In this article, the authors integrate customer relationship management (CRM) and information systems research and provide a comprehensive framework to understand the effects of two defining IT characteristics, network effects and market growth, on a firm's ability to acquire and retain customers, and the links from acquisition and retention to profitability.
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Competition between Alliance Blocks: The Case of the RISC Microprocessor Technology:

TL;DR: In this paper, the authors focus on the RISC microprocessor field and analyze the competitive forces in standards battles, and take into consideration the need for internal coordination within alliance blocks, finding the formation of alliance blocks around the various proprietary RISC designs.
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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.