Unformatted text preview: pen standards Cases High-tech industry E Exercise: networks
(this slide: recommended; not required)
In a competitive market with a nonproprietary standard, …rms employ marginal
cost pricing & earn zero pro…ts.
At the optimum: p (n )
Thus, Lecture 15: Indirect networks, c = 0 where p (n) = w (n, n) =
n +1 1
2n 2 c=0 Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Indirect networks Open standards Cases High-tech industry Reading:
Scotchmer, "Innovation & incentives", Subsection 10.2, p. 298-305 Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. E...
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