Networks and Switching Costs

Pak-Sing Choi, Eric Dunaway and Felix Munoz-Garcia
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Eric Dunaway: Wabash College

Chapter Chapter 10 in Industrial Organization, 2021, pp 415-436 from Springer

Abstract: Abstract This chapter studies the strategic interaction of firms in the presence of network effects, where the adoption of the same technology or standard by several firms allows each firm to benefit from larger market demand, lower production cost, or both. This can happen even when the technology that firms adopt is inferior to other technologies, such as the Blue-ray disk, often regarded as inferior to High-Definition DVDs.

Date: 2021
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DOI: 10.1007/978-3-030-57284-6_10

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