Matches in SemOpenAlex for { <https://semopenalex.org/work/W2116789073> ?p ?o ?g. }
Showing items 1 to 82 of
82
with 100 items per page.
- W2116789073 abstract "In this paper we considered a new solution to the credibility problem present in network industries. This problem arises because the value of a network good to its owner depends positively on the number of consumers who buy the good. Because of this property, it is in the interest of the producer to try to convince consumers that the market will be large, even if he knows it is untrue. Consumers, in turn, will disregard producer claims, and will, instead, try to reason out what size the market will attain. As a result, a lower than optimal quantity, both for consumers and producers, will be produced, i.e., the resulting equilibrium is Pareto inefficient. Katz and Shapiro (1985) and Economides (1996) suggest a solution to this problem in which the firm invites competitors to share their technology and enter the market, thus voluntarily giving up their monopoly position. We suggest an alternative remedy of pre-producing the good. This has the effect of changing the firm's cost structure in a manner that causes consumers to believe that the amount they will optimally sell (and hence the market size) will increase, again leading to higher profitability. The two strategies are compared, and we show the conditions under which each is preferable. We then consider combinations of these two strategies in two different manners. In the first the leader produces and then invites competitors who then also pre-produce, and in the second the leader pre-produces but the fringe firms do not; rather, they produce in the same period in which they sell. Surprisingly we found that the latter dominated the former, which led us to a better understanding about how and why each strategy works. In short, inviting competitors creates a positive externality that benefits all firms, while pre-producing helps only the firm doing the pre-producing and harms all other firms. Thus, the leader invites competitors so he can benefit from the positive externality, but he is better off if the competitors do not pre-produce." @default.
- W2116789073 created "2016-06-24" @default.
- W2116789073 creator A5007897950 @default.
- W2116789073 creator A5034236412 @default.
- W2116789073 date "2003-01-01" @default.
- W2116789073 modified "2023-10-17" @default.
- W2116789073 title "Credibility, Pre-Production and Inviting Competition in a Network Market" @default.
- W2116789073 cites W1537049178 @default.
- W2116789073 cites W1973308529 @default.
- W2116789073 cites W2047212489 @default.
- W2116789073 cites W2170861858 @default.
- W2116789073 doi "https://doi.org/10.2139/ssrn.387422" @default.
- W2116789073 hasPublicationYear "2003" @default.
- W2116789073 type Work @default.
- W2116789073 sameAs 2116789073 @default.
- W2116789073 citedByCount "10" @default.
- W2116789073 countsByYear W21167890732012 @default.
- W2116789073 crossrefType "journal-article" @default.
- W2116789073 hasAuthorship W2116789073A5007897950 @default.
- W2116789073 hasAuthorship W2116789073A5034236412 @default.
- W2116789073 hasBestOaLocation W21167890732 @default.
- W2116789073 hasConcept C10138342 @default.
- W2116789073 hasConcept C119857082 @default.
- W2116789073 hasConcept C127576917 @default.
- W2116789073 hasConcept C129361004 @default.
- W2116789073 hasConcept C144133560 @default.
- W2116789073 hasConcept C16051113 @default.
- W2116789073 hasConcept C162324750 @default.
- W2116789073 hasConcept C162853370 @default.
- W2116789073 hasConcept C175444787 @default.
- W2116789073 hasConcept C17744445 @default.
- W2116789073 hasConcept C18903297 @default.
- W2116789073 hasConcept C198082294 @default.
- W2116789073 hasConcept C199539241 @default.
- W2116789073 hasConcept C2776291640 @default.
- W2116789073 hasConcept C2778348673 @default.
- W2116789073 hasConcept C2780224610 @default.
- W2116789073 hasConcept C2781127519 @default.
- W2116789073 hasConcept C40700 @default.
- W2116789073 hasConcept C41008148 @default.
- W2116789073 hasConcept C86803240 @default.
- W2116789073 hasConcept C91306197 @default.
- W2116789073 hasConceptScore W2116789073C10138342 @default.
- W2116789073 hasConceptScore W2116789073C119857082 @default.
- W2116789073 hasConceptScore W2116789073C127576917 @default.
- W2116789073 hasConceptScore W2116789073C129361004 @default.
- W2116789073 hasConceptScore W2116789073C144133560 @default.
- W2116789073 hasConceptScore W2116789073C16051113 @default.
- W2116789073 hasConceptScore W2116789073C162324750 @default.
- W2116789073 hasConceptScore W2116789073C162853370 @default.
- W2116789073 hasConceptScore W2116789073C175444787 @default.
- W2116789073 hasConceptScore W2116789073C17744445 @default.
- W2116789073 hasConceptScore W2116789073C18903297 @default.
- W2116789073 hasConceptScore W2116789073C198082294 @default.
- W2116789073 hasConceptScore W2116789073C199539241 @default.
- W2116789073 hasConceptScore W2116789073C2776291640 @default.
- W2116789073 hasConceptScore W2116789073C2778348673 @default.
- W2116789073 hasConceptScore W2116789073C2780224610 @default.
- W2116789073 hasConceptScore W2116789073C2781127519 @default.
- W2116789073 hasConceptScore W2116789073C40700 @default.
- W2116789073 hasConceptScore W2116789073C41008148 @default.
- W2116789073 hasConceptScore W2116789073C86803240 @default.
- W2116789073 hasConceptScore W2116789073C91306197 @default.
- W2116789073 hasLocation W21167890731 @default.
- W2116789073 hasLocation W21167890732 @default.
- W2116789073 hasLocation W21167890733 @default.
- W2116789073 hasOpenAccess W2116789073 @default.
- W2116789073 hasPrimaryLocation W21167890731 @default.
- W2116789073 hasRelatedWork W1515105923 @default.
- W2116789073 hasRelatedWork W2134432920 @default.
- W2116789073 hasRelatedWork W2347530082 @default.
- W2116789073 hasRelatedWork W2348875674 @default.
- W2116789073 hasRelatedWork W2365824682 @default.
- W2116789073 hasRelatedWork W2381756379 @default.
- W2116789073 hasRelatedWork W2382401324 @default.
- W2116789073 hasRelatedWork W2390758742 @default.
- W2116789073 hasRelatedWork W4251534285 @default.
- W2116789073 hasRelatedWork W49364032 @default.
- W2116789073 isParatext "false" @default.
- W2116789073 isRetracted "false" @default.
- W2116789073 magId "2116789073" @default.
- W2116789073 workType "article" @default.