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The Behavior of Technology Suppliers in the Presence of Network Externalities

This study surveys the theoretical literature dealing with the behavior of technology suppliers in the presence of network externalities with a focus on economies of compatibility setting and promotional pricing. Positive network externalities arise when a good is more valuable to a user because more users adopt the same good or compatible ones. There are two issues with network externalities: demand side and supply side. This paper focuses on the supply side, and it relates the way that technologies are chosen and promoted. On the supply side, product compatibility choice, technology sponsorship, penetration pricing, and product pre-announcement are the competing strategies of firms operating in a market with network externalities. Among these strategies, compatibility choice decisions and promotional pricing are presented in the two different subsections, which follows. / Master of Arts

Identiferoai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/35399
Date24 October 2001
CreatorsYousef-Sibdari, Soheil
ContributorsEconomics, Giles, Robert H. Jr.
PublisherVirginia Tech
Source SetsVirginia Tech Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Formatapplication/pdf
RightsIn Copyright, http://rightsstatements.org/vocab/InC/1.0/
RelationSoheil.pdf

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