eprintid: 20417
rev_number: 51
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/02/04/17
datestamp: 2016-06-07 13:08:23
lastmod: 2021-07-01 13:37:08
status_changed: 2021-07-01 13:37:08
type: monograph
metadata_visibility: no_search
creators_name: Halaburda, Hanna
creators_name: Jullien, Bruno
creators_name: Yehezkel, Yaron
creators_idrefppn: 031032176
creators_halaffid: 1002422
title: Dynamic competition with network externalities: why history matters
ispublished: pub
subjects: subjects_ECO
abstract: 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.
date: 2016-03
date_type: published
publisher: TSE Working Paper
official_url: http://tse-fr.eu/pub/30384
faculty: tse
divisions: tse
keywords: network externalities
keywords: dynamic competition
keywords: coordination
language: en
has_fulltext: TRUE
subjectsJEL: JEL_L1
view_date_year: 2016
full_text_status: public
monograph_type: working_paper
series: TSE Working Paper
volume: 16-636
place_of_pub: Toulouse
pages: 65
institution: Université Toulouse 1 Capitole
department: Toulouse School of Economics
book_title: TSE Working Paper
oai_identifier: oai:tse-fr.eu:30384
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oai_lastmod: 2021-06-24T12:47:05Z
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citation:   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     
document_url: https://publications.ut-capitole.fr/id/eprint/20417/1/wp_tse_636.pdf