Networks and Switching Costs
Pak-Sing Choi (),
Eric Dunaway () and
Felix Munoz-Garcia
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Pak-Sing Choi: National Central University
Eric Dunaway: Wabash College
Chapter Chapter 11 in Industrial Organization, 2023, pp 645-666 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: 2023
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DOI: 10.1007/978-3-031-38635-0_11
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