Narrow Search
Last searches

Results for *

Displaying results 1 to 1 of 1.

  1. Optimal compatibility in systems markets
    Published: 2014
    Publisher:  CESifo, München

    We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a... more

    Staats- und Universitätsbibliothek Bremen
    No inter-library loan
    Niedersächsische Staats- und Universitätsbibliothek Göttingen
    No inter-library loan
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 63 (5037)
    No inter-library loan

     

    We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a fundamental conflict of interest between consumers and producers over the standardization decision. Consumers prefer standardization with full compatibility because it offers more variety that confers a better match with their ideal specifications. However, firms are likely to choose the minimal compatibility to maximize product differentiation and soften competition. This is in sharp contrast to the previous literature that shows the alignment of private and social incentives for compatibility.

     

    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/105129
    Series: Array ; 5037
    Subjects: compatibility; system competition; standardization; spatial competition model; free entry
    Scope: Online-Ressource (28 S.), graph. Darst.