A note on critical masses, network externalities and converters
Article Abstract:
Superior technological standards have smaller critical mass in order to displace inferior alternatives. This study builds on the Witt model to show that critical mass of a given technology depends on its efficiency and compatibility with an existing standard, hence more efficient technologies need not have smaller critical masses. Also discussed are some consequences for the economics of converters and egateway technologiesE.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2004
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Bundling new products with old to signal quality, with application to the sequencing of new products
Article Abstract:
The theory of informational leverage in the context of bundling, a product of established quality to one of unknown quality that can alleviate problem of asymmetric information encountered in the latter market, is discussed. It is further suggested that leveraging reputation in one market into another has implications for the timing of new product introductions.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2003
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- Abstracts: Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters. Service hours with asymmetric distributions of ideal service time
- Abstracts: R&D in markets with network externalities. Dynamic monopoly pricing with network externalities. The timing of product introduction and the credibility of compatibility decisions