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42001:
Competitive
Strategy
Eric Budish
Lecture 10. Network Effects II:
Standards, Wars of Attrition,
and Platform Competition
Plan for Today
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Lecture
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Break
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Case: App Stores
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Course Wrapup
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A Few Auction Games
Auction 1
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Prize: a $20 bill
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Auction format: standard open outcry auction
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Bidding is voluntary
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Bidding starts at $1, increments of $1
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Bid by calling out the dollar amount
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Auction ends when no new bidders
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High bidder wins, pays her bid amount
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We are playing for real money. We’ll settle up at the
break.
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