Equilibrium in Competing Networks with Differentiated Products

André de Palma () and Luc Leruth
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Luc Leruth: Asian Development Bank and Solvay Business School, Manilla, Philippines

Transportation Science, 1993, vol. 27, issue 1, 73-80

Abstract: We study “positive network externalities” in a horizontally differentiated industry. We show that a symmetric Nash equilibrium in prices exists if and only if the degree of product differentiation is sufficiently large. We also study the impact of larger or lower compatibility on equilibrium prices.

Date: 1993
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Related works:
Working Paper: Equilibrium in Competing Networks with Differentiated Products (1989)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:27:y:1993:i:1:p:73-80

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