Strategic Delegation with Network Externality and Product Compatibility
KCI
- Title
- Strategic Delegation with Network Externality and Product Compatibility
- Authors
- HAHN, GUANGSUG; KWON JOON YEOP
- Date Issued
- 2018-12
- Publisher
- 한국경제연구학회
- Abstract
- We investigate the effects of network externality and product compatibility on strategic delegation under price competition in duopoly. We extend the Hoernig (2012) to the case in which product compatibility is endogenously determined and is built into network effects. When the spillover effect for network size depends on the rival’s choice of product compatibility, perfect compatibility is a dominant strategy for each manager. Thus, endogenizing product compatibility excludes the equilibrium of Hoernig (2012) who assumes no compatibility between products. In equilibrium, firm owners require their managers to be more aggressive than profit maximizer if network externality is sufficiently strong but not too strong.
- URI
- https://oasis.postech.ac.kr/handle/2014.oak/94931
- DOI
- 10.46665/KWE.2018.12.19.3.265
- ISSN
- 1598-2750
- Article Type
- Article
- Citation
- Korea and the World Economy, vol. 19, no. 3, page. 265 - 279, 2018-12
- Files in This Item:
- There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.