relation: https://publications.ut-capitole.fr/id/eprint/20417/
title: Dynamic competition with network externalities: why history matters
creator: Halaburda, Hanna
creator: Jullien, Bruno
creator: Yehezkel, Yaron
subject: B- ECONOMIE ET FINANCE
description: We consider dynamic competition among platforms in a market with network  externalities. A platform that dominated the market in the previous period be-  comes \focal" in the current period, in that agents play the equilibrium in which  they join the focal platform whenever such equilibrium exists. Yet when faced  with higher-quality competition, can a low-quality platform remain focal? In the  nite-horizon case, the unique equilibrium is ecient for \patient" platforms;  with an innite time horizon, however, there are multiple equilibria where ei-  ther the low- or high-quality platform dominates. If qualities are stochastic,  the platform with a better average quality wins with a higher probability, even  when its realized quality is lower, and this probability increases as platforms  become more patient. Hence social welfare may decline as platforms become  more forward looking.
publisher: TSE Working Paper
date: 2016-03
type: Monograph
type: NonPeerReviewed
format: text
language: en
identifier: https://publications.ut-capitole.fr/id/eprint/20417/1/wp_tse_636.pdf
identifier:   Halaburda, Hanna, Jullien, Bruno <https://www.idref.fr/031032176> and Yehezkel, Yaron  (2016) Dynamic competition with network externalities: why history matters.  TSE Working Paper, n. 16-636, Toulouse     
relation: http://tse-fr.eu/pub/30384
language: en