Equilibrium in Competing Networks with Differentiated Products
Published Online:1 Feb 1993https://doi.org/10.1287/trsc.27.1.73
Abstract
We study “positive network externalities” in a horizontally differentiated industry. We show that a symmetric Nash equilibrium in prices exists if and only if the degree of product differentiation is sufficiently large. We also study the impact of larger or lower compatibility on equilibrium prices.
