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.

Name thesis:degree_name

Master of Arts

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Economics

Department dc:contributor.department

Economics

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

2001

Author dc:creator

• Yousef-Sibdari, Soheil

Chair dc:contributor.committeechair

• Giles, Robert H. Jr.

• Technology Suppliers
• Network Externalities
• Information Goods
• Microeconomics Theory
• Industrial Organization

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

en

Dc Identifier Other

etd-10162001-155423

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/35399