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2013 | nr 35 | 45--64
Tytuł artykułu

Enforced compatibility and control of switching costs in markets with network externalities: an experiment

Treść / Zawartość
Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
We experimentally investigate two competition policy measures relevant for markets with network externalities: mandating technological compatibility and lowering the cost of switching between providers. We do so in a virtual market with the roles of both sellers and buyers being played by student subjects. We find only limited support for usefulness of the analyzed measures: our treatment manipulations have no effect on sellers' pricing strategies. They do, however, reduce individual lock-in, helping the buyers to obtain the currently cheaper variant and thus increase customers' welfare. (original abstract)
Rocznik
Numer
Strony
45--64
Opis fizyczny
Twórcy
  • Uniwersytet Warszawski
  • Uniwersytet Warszawski
  • Uniwersytet Warszawski
Bibliografia
  • Bikhchandani, S.K.; D. Hirshleifer and I. Welch, (1992), "A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades", Journal of Political Economy, 100(5): 992-1026.
  • Braunstein, Y.M. and White, L.J., (1985) "Setting technical compatibility standards: An economic analysis", Antitrust Bulletin, 30(2): 337-356.
  • Chakravarty, S. (2003) "An experimental market with network effects and one sponsored seller" In: Baye, M., Editor, "Advances in Applied Microeconomics", Organizing the New Industrial Economy, 12: 189-236.
  • Chakravarty, S. (2003) "Experimental Evidence on Product Adoption in the Presence of Network Externalities", Review of Industrial Organization, 23(3): 233-254.
  • d'Aspremont, C., J.J. Gabszewicz, and J.F. Thisse (1979) "On Hotellings's Stability in Competition", Econometrica, 47(5): 1145-1150.
  • Dang, T.O'N. and K.J. Ackerman (2009) "Competition and lock-in in an experimental market with network effects", Department of Economics, University of Arizona.
  • Drehmann, M., J. Oechssler, and A. Roider (2007) "Herding with and without pay off externalities - an internet experiment", International Journal of Industrial Organization, 25(2): 391-415.
  • Economides, N. (1986) "Minimal and maximal product differentiation in Hotelling's duopoly", Economic Letters, 21(1): 67-71.
  • Economides, N. and L.J. White (1994) "Networks and compatibility: implications for antitrust", European Economic Review, 38(3): 651-662.
  • Etziony, A., and A. Weiss (2002) "Coordination and Critical Mass in a Network Market - An Experimental Evaluation", Working paper.
  • Farrell, J., and P. Klemperer (2007) "Coordination and lock-in: Competition with switching costs and network effects", Handbook of industrial organization, 1967-2072
  • Katz, M., and C. Shapiro (1985) "Network Externalities, Competition and Compatibility", American Economic Review 75(3): 424-440.
  • Katz, M., and C. Shapiro (1986) "Technology Adoption in the Presence of Network Externalities", Journal of Political Economy, 94(4): 822-841.
  • Morgan, P.B, and O. Shy (2000) "Undercut Proof Equilibria", Tel Aviv, Papers 01/1996.
  • Shy, O. (1996) "Industrial organization: theory and applications", MIT Press Books, 133-167.
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171283271

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