Compatibility, network effects, and collusion
Economics Letters, 2017, vol. 151, issue C, 39-43
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)
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