G2TT
来源类型Discussion paper
规范类型论文
来源IDDP7778
DP7778 Competition with Local Network Externalities
Espen R. Moen; Christian Riis; Øystein Fjeldstad
发表日期2010-04-04
出版年2010
语种英语
摘要Local network externalities are present when the utility of buying from a firm not only depends on the number of other customers (global network externalities), but also on their identity and/or characteristics. We explore the consequences of local network externalities within a framework where two firms compete offering differentiated products. We first show that local network externalities, in contrast to global network externalities, don't necessarily sharpen competition. Then we show that the equilibrium allocation is inefficient, in the sense that the allocation of consumers on firms does not maximize social surplus. Finally we show that local network externalities create a difference between the marginal and the average consumer, which gives rise to inefficiently high usage prices and too high level of compatibility between the networks.
主题Industrial Organization
关键词Competition Differentiated products Efficiency Local network externalities
URLhttps://cepr.org/publications/dp7778
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/536613
推荐引用方式
GB/T 7714
Espen R. Moen,Christian Riis,Øystein Fjeldstad. DP7778 Competition with Local Network Externalities. 2010.
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