Anmerkungen:
In: Seoul Journal of Economics 29 (No. 3 2016): 411-429
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 30, 2016 erstellt
Beschreibung:
This study investigates the effect of consumption externalities on entry decision in network industries. A non-monotonic relation exists in the monopoly/duopoly profit differential. A monopolist which has to pay a cost to maintain his dominant position, such as a license fee or lobby expenditures, can block more easily entry for a wide range of network externalities unless these externalities are not exceedingly intense. Therefore, network externalities work as an “innocent” barrier to entry. The capacity choice of the incumbent in a “capacity-then-production” model reinforces the “innocent” entry barrier effect for the potential entrant