Econ 483_Lecture 15_Indirect networks

E indirect networks open standards cases high tech

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Unformatted text preview: pen standards Cases High-tech industry E Exercise: networks (this slide: recommended; not required) Competitive market: 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) = 1 1 +1 2 nc 2nc 1 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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