Intrinsic quality improvements and network externalities
(2007) International Journal of Economic Theory — Vol. 3, n° 4, p. 261-278 (2007)
Files
No attached file found for this publication.
Details
- Authors
- Abstract
- We analyze the optimal pricing choice of an incumbent firm that sells a good with network externalities and is threatened by the entry of a higher intrinsic quality variant. In the framework of a vertical differentiation model, we find a necessary and sufficient condition under which intrinsic quality improvement occurs as a result of this competition.
- Affiliations
Technical University of Lisbon ISEG (School of Economics and Management)
Citations
Jaskold Gabszewicz, J., & Garcia, F. (2007). Intrinsic quality improvements and network externalities. International Journal of Economic Theory, 3(4), 261-278. https://doi.org/10.1111/j.1742-7363.2007.00059.x (Original work published 2007)