Download full text
(330.5Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-238402
Exports for your reference manager
Network effects, market structure and industry performance
[working paper]
Corporate Editor
Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Abstract "This paper provides a thorough analysis of oligopolistic markets with positive demand-
side network externalities and perfect compatibility. The minimal structure
imposed on the model primitives is such that industry output increases in a firm's
rivals’ total output as well as in the expected ne... view more
"This paper provides a thorough analysis of oligopolistic markets with positive demand-
side network externalities and perfect compatibility. The minimal structure
imposed on the model primitives is such that industry output increases in a firm's
rivals’ total output as well as in the expected network size. This leads to a generalized
equilibrium existence treatment that includes guarantees for a nontrivial equilibrium,
and some insight into possible multiplicity of equilibria. We formalize the concept of industry viability and show that is it always enhanced by having more firms in the market and/or by technological improvements. We also characterize the effects of market structure on industry performance, with an emphasis on departures from standard markets. The approach relies on latticetheoretic methods, which allow for a unified treatment of various general results in
the literature on network goods. Several illustrative examples with closed-form solutions are also provided." (author's abstract)... view less
Keywords
equilibrium model; economic model; network; industrial enterprise; industry; competition; market mechanism; effect; enterprise; oligopoly; market
Classification
Political Economy
Method
basic research
Free Keywords
network effects; demand-side externalities; monotone comparative statics; cournot oligopoly; supermodularity
Document language
English
Publication Year
2010
City
Berlin
Page/Pages
40 p.
Licence
Deposit Licence - No Redistribution, No Modifications
Data providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne