Abstract
This chapter studies the strategic interaction of firms in the presence of network effects, where the adoption of the same technology or standard by several firms allows each firm to benefit from larger market demand, lower production cost, or both. This can happen even when the technology that firms adopt is inferior to other technologies, such as the Blue-ray disk, often regarded as inferior to High-Definition DVDs.
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Choi, PS., Dunaway, E., Munoz-Garcia, F. (2021). Networks and Switching Costs. In: Industrial Organization. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-57284-6_10
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DOI: https://doi.org/10.1007/978-3-030-57284-6_10
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