|
EconStor >
Wissenschaftszentrum Berlin für Sozialforschung (WZB) >
Discussion Papers, Abteilung Verhalten auf Märkten, WZB >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/54570
|
| | |
| Title: | | Network effects, market structure and industry performance  |
| Authors: | | Amir, Rabah Lazzati, Natalia |
| Issue Date: | | 2010 |
| Series/Report no.: | | Discussion papers // Wissenschaftszentrum Berlin für Sozialforschung, Schwerpunkt Märkte und Politik: Abteilung Verhalten auf Märkten SP II 2010-12 |
| Abstract: | | This paper provides a thorough analysis of oligopolistic markets with positive demand-side network externalities and perfect compatibility. The minimal structure imposed on the model primitives is such that industry output increases in a firm's rivals' total output as well as in the expected network size. This leads to a generalized equilibrium existence treatment that includes guarantees for a nontrivial equilibrium, and some insight into possible multiplicity of equilibria. We formalize the concept of industry viability and show that is it always enhanced by having more firms in the market and/or by technological improvements. We also characterize the effects of market structure on industry performance, with an emphasis on departures from standard markets. The approach relies on latticetheoretic methods, which allow for a unified treatment of various general results in the literature on network goods. Several illustrative examples with closed-form solutions are also provided. |
| Subjects: | | Network effects demand-side externalities monotone comparative statics Cournot oligopoly supermodularity |
| JEL: | | C72 D43 L13 L14 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des WZB Discussion Papers, Abteilung Verhalten auf Märkten, WZB
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/54570
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|