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dc.contributor.authorVanberg, Margit A.en_US
dc.date.accessioned2009-02-16T14:49:37Z-
dc.date.available2009-02-16T14:49:37Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/24176-
dc.description.abstractThe majority of industrial organizations literature on network externalities looks at firm behavior under given market characteristics. The present paper instead asks the question whether the presence of network externalities can change market characteristics, specifically, whether an initially large market player can decline cooperation (interconnection) with competing network operators and thereby gain a dominant position when network externalities are significant. The paper comes to the conclusion that only when a network operator already has network specific market power due to the ownership of a monopolistic bottleneck network area, will network externalities enable the operator to increase his market dominance. In competitive markets or in contestable natural monopolies, however, network externalities will not lend network specific market power to an initially large operator. In these markets, the market process can be expected to solve the trade-off between ensuring cooperation between competing operators and at the same time safeguarding competition in product characteristics and quality of service.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 05-80en_US
dc.subject.jelL43en_US
dc.subject.jelL15en_US
dc.subject.ddc330en_US
dc.subject.keywordnetwork externalitiesen_US
dc.subject.keywordinterconnectionen_US
dc.subject.keywordregulationen_US
dc.subject.stwNetwork Externalitiesen_US
dc.subject.stwStruktur-Performance-Modellen_US
dc.subject.stwIndustrieökonomiken_US
dc.subject.stwWettbewerbstheorieen_US
dc.subject.stwUnternehmenskooperationen_US
dc.subject.stwNormungen_US
dc.subject.stwTheorieen_US
dc.titleNetwork Externalities and Interconnection Incentivesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn504688626en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:4563-
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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