search query: @author Church, J. / total: 5
reference: 4 / 5
Author: | Church, J. Gandal, N. |
Title: | Complementary network externalities and technological adoption. |
Journal: | International Journal of Industrial Organization
1993 : JUN, VOL. 11:2, p. 239-260 |
Index terms: | NETWORKS SOFTWARE OLIGOPOLY MODELS |
Language: | eng |
Abstract: | This article addresses the adoption of technology when there are network externalities and networks are characterized by complementary products produced by different firms. When the software firms are Bertrand competitors, a hardware technology with lower software development costs is adopted for many parameter values for which it is socially optimal to adopt the other technology. The over-adoption is due to a discrepancy between the private and social benefit of having a larger network. |
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