2003•Systems EngineeringRequires access
Market Entry and Network Externalities
Hongmin Chen
Open publisher page 1 citations
Abstract
Based on Cournot model and Stachelberg model this paper analyzes the effects of two firms’ entry in the context of network externalities. The results show that the way of entry and the strength of network externalities play the key roles in the firms’ entry and competitive advantage. Furthermore, the regulation of government will improve the total welfare in network industry.