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| Author: | Clements, M.T. Ohashi, H. |
| Title: | Indirect network effects and the product cycle: video games in the U.S., 1994-2002 |
| Journal: | Journal of Industrial Economics
2005 : DEC, VOL. 53:4, p. 515-542 |
| Index terms: | networks software USA video games industry |
| Language: | eng |
| Abstract: | This article investigates the importance of indirect network effects in the U.S. video game market between 1994 and 2002. The diffusion of game systems is analyzed by the interaction between console adoption decisions and software supply decisions. Estimation results suggest that introductory pricing is an effective practice at the beginning of the product cycle, and expanding software variety becomes more effective later. |
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