Compatibility, network effects, and collusion

Alexander Rasch

Economics Letters, 2017, vol. 151, issue C, 39-43

Abstract: I consider a market with network effects in which firms collude on prices. Depending on the fixed costs for achieving compatibility, there may be a non-monotone relationship between firms’ decisions to make their products compatible and their intertemporal preferences.

Keywords: Collusion; Compatibility; Network effect; Standard (search for similar items in EconPapers)
JEL-codes: L13 L14 L15 L41 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:151:y:2017:i:c:p:39-43

DOI: 10.1016/j.econlet.2016.11.031

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