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Credibility, Pre-Production and Inviting Competition in a Network Market

Author

Listed:
  • Etziony Amir

    (Hewlett Packard, Israel)

  • Weiss Avi

    (Bar-Ilan University and IZA)

Abstract

Previous authors have suggested inviting competition as a solution to the credibility issues that arise when a new network good is introduced. We suggest an alternative remedy of pre-producing the good. The two strategies are compared, as are combinations of these two strategies in two different manners. The comparison yields a deeper understanding about how and why each strategy works.

Suggested Citation

  • Etziony Amir & Weiss Avi, 2010. "Credibility, Pre-Production and Inviting Competition in a Network Market," Review of Network Economics, De Gruyter, vol. 9(1), pages 1-34, February.
    • Handle: RePEc:bpj:rneart:v:9:y:2010:i:1:n:4
    DOI: 10.2202/1446-9022.1206
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    Cited by:

    1. Etziony Amir & Weiss Avi, 2012. "Inviting Competition to Achieve Critical Mass," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-22, June.
    2. Weiss, Avi & Etziony, Amir, 2015. "The role of critical mass in establishing a successful network market: An experimental investigationAuthor-Name: Ruffle, Bradley J," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 101-110.
    3. Bradley J. Ruffle, Avi Weiss, Amir Etziony, 2015. "The Role of Critical Mass in Establishing a Successful Network Market: An Experimental Investigation," LCERPA Working Papers 0092, Laurier Centre for Economic Research and Policy Analysis, revised 12 May 2015.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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