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| Tekijä: | Csorba, G. Hahn, J-H. |
| Otsikko: | Functional degradation and asymmetric network effects |
| Lehti: | Journal of Industrial Economics
2006 : JUN, VOL. 54:2, p. 253-268 |
| Asiasana: | networks |
| Vapaa asiasana: | functional degradation |
| Kieli: | eng |
| Tiivistelmä: | In markets subject to network effects, companies often remove some functions of their original products and sell a functionally-downgraded version at a lower or zero price. This article aims to provide a pure network effect based explanation of such a practice. The study builds a functional degradation model with asymmetric network effects and investigates when and why companies have incentives to introduce a functionally-degraded good and discusses its welfare implication. |
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