The perpetual trouble with network products: Why IT firms choose partial compatibility

Arbeitspapier

Compatibility of network products is an important issue in markets for communication technology as well as hard- and software products. Empirical findings suggest that firms competing in these markets typically choose intermediate degrees of product compatibility. We present a strategic two-stage game of two firms deciding strategically or commonly on the degree of product compatibility in the first stage and on prices in the second stage. Indeed, partial compatibility constitutes a subgame perfect Nash equilibrium when coordination costs of standardization are high and the installed bases are low.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: University of Tübingen Working Papers in Business and Economics ; No. 150

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Noncooperative Games ; Oligopoly and Other Imperfect Markets ; Information and Product Quality; Standardization and Compatibility
• Thema: Compatibility ; Network Products ; Network Effects

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Stadler, Manfred ; Tobler Trexler, Céline ; Unsorg, Maximiliane
• Ereignis: Veröffentlichung
• (wer): University of Tübingen, Faculty of Economics and Social Sciences
• (wo): Tübingen
• (wann): 2021

Weitere Informationen

• DOI: doi:10.15496/publikation-59233
• Handle: http://hdl.handle.net/10419/237732
• URN: urn:nbn:de:bsz:21-dspace-1178581
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ