Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104944
Authors: 
Woeckener, Bernd W.
Year of Publication: 
1998
Series/Report no.: 
Tübinger Diskussionsbeiträge 127
Abstract: 
This paper models the competition of user networks as a continuous-time Markov process. It presents a dynamic version of the Discrete Choice Analysis with state-dependent choice probabilities. Among other things, we show that the network competition can be characterized by the coexistence of lock-in regimes and a 'metastable' state - i.e. a state which is a probability maximum for a finite period of time. Then, unlike in the case of ergodicity or of simple lock-in scenarios, the networks can coexist for a considerable period of time, although the market is a natural monopoly.
Subjects: 
Ergodicity
Lock-in
Metastability
Network effects
Networks
JEL: 
D11
L10
Document Type: 
Working Paper

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