Does standardization really increase production ? Katz and Shapiro's result revisited

Hubert Stahn
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Hubert Stahn: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique

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Abstract: In market structures with network externalities, it is often asserted that there is a natural tendency toward standardization. In this paper it is argued that incompatible products may survive in static models. As Katz and Shapiro , I develop a simple multi-product oligopoly in which the demand for one of these commodities increases with the number of agents consuming this good. Instead I introduce cost functions and discus the limits of their results and exhibit an example which reverses these ones

Keywords: Multi-product oligopoly; Standardization; Network externalities (search for similar items in EconPapers)
Date: 1998
Note: View the original document on HAL open archive server: https://hal.science/hal-05221014v1
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Published in Annales d'Economie et de Statistique, 1998, 49/50, pp.381-388. ⟨10.2307/20076122⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05221014

DOI: 10.2307/20076122

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