| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP16783 |
| DP16783 Network Externalities and Market Dominance | |
| Robert Akerlof; Richard Holden; Luis Rayo | |
| 发表日期 | 2021-12-07 |
| 出版年 | 2021 |
| 语种 | 英语 |
| 摘要 | Many of the largest publicly traded companies--for example, Amazon, Google, and Facebook--operate in "new economy" markets with large network externalities where demand need not be downward sloping and there can be multiple equilibria in demand. Modeling these increasingly important--but not yet fully understood--markets requires taking a stance on the shape of the demand curve and on when firms will be "in" or "out." In an attempt to make further progress, we propose a framework with an intuitively-appealing demand curve (which we micro-found) and a new focality concept, based upon level-k thinking, that is both tractable and flexible enough to accommodate heterogeneous consumers. Under this focality concept, consumers' "impulses"--or level-0 thinking--determine the level of demand. We show that firms may compete for the market itself rather than for the marginal consumer, and that a novel form of limit pricing arises in this case. We characterize how competition changes with firms' technologies, consumers' impulses, and the strength of network externalities, and discuss how our theory informs debates on regulation of the new economy. |
| 主题 | Industrial Organization |
| 关键词 | Network externalities Price competition Market dominance |
| URL | https://cepr.org/publications/dp16783 |
| 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/545716 |
| 推荐引用方式 GB/T 7714 | Robert Akerlof,Richard Holden,Luis Rayo. DP16783 Network Externalities and Market Dominance. 2021. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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