On a Stackelberg leader's incentive to invite entry into horizontally differentiated oligopolies with network externalities: A reexamination

Ryoma Kitamura () and Tsuyoshi Toshimitsu
Additional contact information
Ryoma Kitamura: Faculty of Economics, Otemon Gakuin University

No 203, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: We develop a model of horizontally differentiated oligopolies with network externalities and reconsider a Stackelberg leader's incentive to invite entry, a problem previously examined by Economides (1996) and Kim (2002). We demonstrate that a Stackelberg leader has (does not have) an incentive to invite entry if the degree of network externalities is larger (smaller) than that of the product substitutability, such that a follower's profit increases (decreases).

Keywords: Network externality; Horizontally differentiated oligopoly; Stackelberg competition; Entry; Passive expectation; Responsive expectation (search for similar items in EconPapers)
JEL-codes: D21 D43 D62 L13 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2020-02
New Economics Papers: this item is included in nep-com, nep-gth, nep-ind and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://192.218.163.163/RePEc/pdf/kgdp203.pdf First version, 2020 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:203

Access Statistics for this paper

More papers in Discussion Paper Series from School of Economics, Kwansei Gakuin University Contact information at EDIRC.
Bibliographic data for series maintained by Toshihiro Okada ().