search query: @indexterm COMPACT DISC INDUSTRY / total: 16
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| Author: | Basu, A. Mazumdar, T. Raj, S. P. |
| Title: | Indirect Network Externality Effects on Product Attributes |
| Journal: | Marketing Science
2003 : SPRING, VOL. 22:2, p. 209-221 |
| Index terms: | NETWORK EXTERNALITIES PRODUCT ATTRIBUTES COMPACT DISC INDUSTRY |
| Language: | eng |
| Abstract: | Indirect network externality (INE) effect exists when the utility of a product increases with the greater availability of compatible complementary products. The authors demonstrate that INE effects can vary by product attributes, with externality-sensitive attributes gaining more from increased availability of complementary products than other attributes. Past research has assumed that the benefit of increased availability of complementary products accrues to the entire product. Utilizing data covering a period from 1985 to 1995 on compact disc player prices, attributes, and CD titles releases, and using a hedonic price approach, the authors find significant positive interactions between CD title availability and two attributes of the CD player, namely changer capacity and its oversampling rate. |
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