Intraconnectivity and Interconnectivity: When Value Creation May Reduce Profits

References

• Anderson E., Jung H., Simester D. The role of product standardization in reducing the threat from competition. (2010) . Working paper, Northwestern University, Evanston, ILGoogle Scholar
• Armstrong M. Network interconnection in telecommunications. Econom. J. (1998) 108(448):545–564Google Scholar
• Banker R. D., Cavusoglu H., Kumar N. Investments in technology and value appropriation. (2007) . Working paper, Temple University, PhiladelphiaGoogle Scholar
• Basu A., Mazumdar T., Raj S. P. Indirect network externality effects on product attributes. Marketing Sci. (2003) 22(2):209–221Link, Google Scholar
• Bouckaert J., Degryse H. Softening competition by inducing switching in credit markets. J. Indust. Econom. (2004) 52(1):27–52Crossref, Google Scholar
• Brander J. A., Spencer B. J. Strategic commitment with R&D: The symmetric case. Bell J. Econom. (1983) 14(1):225–235Crossref, Google Scholar
• Cabral L. Dynamic price competition with network effects. Rev. Econom. Stud. (2011) 78(1):83–111Crossref, Google Scholar
• Cabral L. M. B., Villas-Boas J. M. Bertrand supertraps. Management Sci. (2005) 51(4):599–613Link, Google Scholar
• Calzada J., Valletti T. M. Network competition and entry deterrence. Econom. J. (2008) 118(531):1223–1244Google Scholar
• Caminal R., Matutes C. Endogenous switching costs in a duopoly model. Internat. J. Indust. Organ. (1990) 8(3):353–374Crossref, Google Scholar
• Carr N. G. IT doesn't matter. Harvard Bus. Rev. (2003) 81(5):41–49Google Scholar
• Carter M., Wright J. Interconnection in network industries. Rev. Indust. Organ. (1999) 14(1):1–25Crossref, Google Scholar
• Chen Y., Xie J. Cross-market network effect with asymmetric customer loyalty: Implications for competitive advantage. Marketing Sci. (2007) 26(1):52–66Link, Google Scholar
• Choi J. P. Network externality, compatibility choice, and planned obsolescence. J. Indust. Econom. (1994) 42(2):167–182Crossref, Google Scholar
• d'Aspremont C., Gabszewicz J. J., Thisse J.-F. On Hotelling's “Stability in competition”. Econometrics (1979) 47(5):1145–1150Crossref, Google Scholar
• Denicolo V. Compatibility and bundling with generalist and specialist firms. J. Indust. Econom. (2000) 48(2):177–188Crossref, Google Scholar
• Desai P. S. Quality segmentation in spatial markets: When does cannibalization affect product line design? Marketing Sci. (2001) 20(3):265–283Link, Google Scholar
• Doganoglu T. Switching costs, experience goods and dynamic price competition. Quant. Marketing Econom. (2010) 8(2):167–205Crossref, Google Scholar
• Doraszelski U., Chen J., Harrington J. Avoiding market dominance: Product compatibility in markets with network effects. RAND J. Econom. (2009) 40(3):455–485Crossref, Google Scholar
• Driskill R. Monopoly and oligopoly supply of a good with dynamic network externalities. (2007) . Working paper, Vanderbilt University, Nashville, TNGoogle Scholar
• Dubé J.-P., Hitsch G., Rossi P. Do switching costs make markets less competitive? J. Marketing Res. (2009) 46(4):435–445Crossref, Google Scholar
• Economides N. Desirability of compatibility in the absence of network externalities. Amer. Econom. Rev. (1989) 79(5):1165–1181Google Scholar
• Einhorn M. A. Mix and match compatibility with vertical product dimensions. RAND J. Econom. (1992) 23(4):535–547Crossref, Google Scholar
• Farrell J., Saloner G. Installed base and compatibility: Innovation, product preannouncements, and predation. Amer. Econom. Rev. (1986) 76(5):940–955Google Scholar
• Fudenberg D., Tirole J. Pricing a network good to deter entry. J. Indust. Econom. (2000) 48(4):373–390Crossref, Google Scholar
• Gans J. S., King S. P. Network competition, customer ignorance and fixed-to-mobile call prices. Inform. Econom. Policy (2000) 12(4):301–327Crossref, Google Scholar
• Hotelling H. Stability in competition. Econom. J. (1929) 39(153):41–57Google Scholar
• Katz M. L., Shapiro C. Network externalities, competition, and compatibility. Amer. Econom. Rev. (1985) 75(3):424–440Google Scholar
• Katz M. L., Shapiro C. Technology adoption in the presence of network externalities. J. Political Econom. (1986) 94(4):822–841Crossref, Google Scholar
• Katz M. L., Shapiro C. Product introduction with network externalities. J. Indust. Econom. (1992) 40(1):55–83Crossref, Google Scholar
• Klemperer P. Markets with consumer switching costs. Quart. J. Econom. (1987a) 102(2):375–394Crossref, Google Scholar
• Klemperer P. The competitiveness of markets with switching costs. RAND J. Econom. (1987b) 18(1):138–150Crossref, Google Scholar
• Kuksov D. Buyer search costs and endogenous product design. Marketing Sci. (2004) 23(4):490–499Link, Google Scholar
• Laffont J.-J., Rey P., Tirole J. Network competition: I. Overview and nondiscriminatory pricing. RAND J. Econom. (1998a) 29(1):1–37Crossref, Google Scholar
• Laffont J.-J., Rey P., Tirole J. Network competition: II. Price discrimination. RAND J. Econom. (1998b) 29(1):38–56Crossref, Google Scholar
• Li X. Cheap talk and bogus network externalities in the emerging technology market. Marketing Sci. (2005) 24(4):531–543Link, Google Scholar
• MacDonald G., Ryall M. D. How do value creation and competition determine whether a firm appropriates value? Management Sci. (2004) 50(10):1319–1333Link, Google Scholar
• Manchanda P., Xie Y., Youn N. The role of targeted communication and contagion in product adoption. Marketing Sci. (2008) 27(6):961–976Link, Google Scholar
• Mariñoso B. G. Technological incompatibility, endogenous switching costs and lock-in. J. Indust. Econom. (2001) 49(3):281–298Crossref, Google Scholar
• Markovich S. Snowball: A dynamic oligopoly model with network externalities. J. Econom. Dynam. Control (2008) 32(3):909–938Crossref, Google Scholar
• Markovich S., Moenius J. Winning while losing: Competition dynamics in the presence of indirect network effects. Internat. J. Indust. Organ. (2009) 27(3):346–357Crossref, Google Scholar
• Matutes C., Regibeau P. Mix and match: Product compatibility without network externalities. RAND J. Econom. (1988) 19(2):221–234Crossref, Google Scholar
• Mitchell M., Skrzypacz A. Network externalities and long-run market share. Econom. Theory (2006) 29(3):621–648Crossref, Google Scholar
• Moorthy K. S. Product and price competition in a duopoly. Marketing Sci. (1988) 7(2):141–168Link, Google Scholar
• Park M. The economic impact of wireless number portability. J. Indust. Econom. (2011) 59(4):714–745Crossref, Google Scholar
• Prasad A., Venkatesh R., Mahajan V. Optimal bundling of technological products with network externality. Management Sci. (2010) 56(12):2224–2236Link, Google Scholar
• Roller L., Tombak M. Strategic choice of flexible production technologies and welfare implications. J. Indust. Econom. (1990) 38(4):417–431Crossref, Google Scholar
• Shi M. Social network-based discriminatory pricing strategy. Marketing Lett. (2003) 14(4):239–256Crossref, Google Scholar
• Shi M., Chiang J., Rhee B.-D. Price competition with reduced consumer switching costs: The case of wireless number portability in the cellular phone industry. Management Sci. (2006) 52(1):27–38Link, Google Scholar
• Sun M., Zhu F. Ad revenue and content commercialization: Evidence from blogs. (2011) . Working paper, Stanford University, Stanford, CAGoogle Scholar
• Sun B., Xie J., Cao H. H. Product strategy for innovators in markets with network effects. Marketing Sci. (2004) 23(2):243–254Link, Google Scholar
• Syam N., Ruan R., Hess J. Customized products: A competitive analysis. Marketing Sci. (2005) 24(4):569–584Link, Google Scholar
• Tucker C., Zhang J. Growing two-sided networks by advertising the user base: A field experiment. Marketing Sci. (2010) 29(5):805–814Link, Google Scholar
• Viard B. Do switching costs make markets more or less competitive? The case of 800-number portability. RAND J. Econom. (2007) 38(1):146–163Crossref, Google Scholar
• Villas-Boas J. M. Consumer learning, brand loyalty, and competition. Marketing Sci. (2004) 23(1):134–145Link, Google Scholar
• Villas-Boas J. M. Dynamic competition with experience goods. J. Econom. Management Strategy (2006) 15(1):37–66Crossref, Google Scholar
• von Weizsäcker C. C. The costs of substitution. Econometrica (1984) 52(5):1085–1116Crossref, Google Scholar
• Xie J., Sirbu M. Price competition and compatibility in the presence of positive demand externalities. Management Sci. (1995) 41(5):909–926Link, Google Scholar