Econ 483_Lecture 15_Indirect networks

Consumers want to buy platforms that give access to

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Unformatted text preview: want to buy platforms that give access to many applications ! Popularity feeds on itself. Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Indirect networks Lecture 15: Indirect networks, Open standards Cases Econ483: Econ of Innovation & Technology, High-tech industry Evangelia Chalioti c A ll rights reserved. E Indirect networks Open standards Cases High-tech industry E Indirect network e¤ects - Can proprietary standards tip a market to monopoly? - Do platform owners have incentives to increase the number of applications or change its price? - Can an initial advantage in applications feed on itself to drive the other …rm out of the market? Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Indirect networks Open standards Cases High-tech industry E Indirect network e¤ects ) The proprietor of a platform can try to tip the market to its platform by creating many exclusive applications. A rival cannot enter wi...
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This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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