search query: @author Choi, J. P. / total: 7
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| Author: | Choi, J. P. Thum, M. |
| Title: | Market structure and the timing of technology adoption with network externalities |
| Journal: | European Economic Review
1998 : FEB, VOL. 42:2, p. 225-244 |
| Index terms: | STANDARDS LICENSING NETWORK EXTERNALITIES TECHNOLOGY MARKET STRUCTURE CONSUMERS |
| Language: | eng |
| Abstract: | In the paper, it is shown that in the presence of network externalities, consumers adopt conventional technologies too early. The problem is aggravated when the new technology is provided by a single producer with market power because any positive value created through waiting by current consumers will be ex-post appropriated by the monopolist. Monopolist's power to extract surplus operates , therefore, against his own interests in this dynamic setting. It is also shown in the paper how the producer of a new technology can partially overcome the problem of too little waiting by using licensing as a commitment device. |
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