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Biglaiser, Gary and Crémer, Jacques
(2016)
The value of incumbency for heterogeneous platforms.
TSE Working Paper, n. 16-630, Toulouse
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Abstract
We study the dynamics of competition in a model with network effects, an incumbent and entry. We propose a new way of representing the strategic advantages of incumbency in a static model and embed it in a dynamic framework with heterogeneous consumers. We completely identify the conditions under which inefficient equilibria with two platforms emerge at equilibrium; explore the reasons why these inefficient equilibria arise; compute the profits of the incumbent and demonstrate that the incumbency advantage does not improve much, if at all, when going from a static to a dynamic framework.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | March 2016 |
| Place of Publication: | Toulouse |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 21 Mar 2016 15:19 |
| Last Modified: | 02 Apr 2021 15:51 |
| OAI Identifier: | oai:tse-fr.eu:30270 |
| URI: | https://publications.ut-capitole.fr/id/eprint/19808 |
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