Network Externalities and Path Dependent Consumer Preferences

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/4047 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/4047 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/4047 archive 351 disk0/00/00/44/99 2016-01-15 02:05:58 2021-08-27 17:15:14 2016-01-15 02:05:58 monograph show 2 Keilbach M. 7448 Network Externalities and Path Dependent Consumer Preferences pub iis_ecn iis_mnt prog_ted Commodities of high technological level play an increasingly important role in the economy. The market of these commodities can exhibit network externalities if different standards compete. This is due to the fact that the market of these technologies is linked to the market of its co-products. Network externalities engender positive feedback on the market i.e. the higher the market share of a certain technology, the higher the demand for it. The present paper suggests a flexible formal model of the dynamics of these markets. This approach allows for identification the dynamic behaviour of markets under different hypotheses concerning behaviour of producers and consumers. It makes explicit the role of network externalities on markets that exhibit increasing returns. 1995-09 published WP-95-097 WP-95-097 10 1368 public working_paper IIASA, Laxenburg, Austria 26 FALSE info:eu-repo/semantics/book