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- W2065504502 abstract "We analyze an industry where two firms sell a good which generates a positive network externality whose value varies across consumers. The firms make product design decisions which determine the degree of compatibility of their goods before competing in quantities. However, consumers can always reap the benefits of compatibility by joining both networks. We show that such ‘double purchases’ drastically affect the nature of the product market equilibrium as well as the compatibility choices made by the firms. While the equilibrium level of compatibility chosen by the firms depends on the degree of consensus required to increase standardization, it tends to be higher than the social optimum." @default.
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- W2065504502 date "1999-07-01" @default.
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- W2065504502 title "Partial compatibility with network externalities and double purchase" @default.
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- W2065504502 doi "https://doi.org/10.1016/s0167-6245(99)00006-2" @default.
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