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Direct and indirect network effects: are they equivalent?

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  • Clements, Matthew T.
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    File URL: http://www.sciencedirect.com/science/article/B6V8P-4C59V4V-1/2/bff50d2799b110bb1416209cb5d2d6db
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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 22 (2004)
    Issue (Month): 5 (May)
    Pages: 633-645

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    Handle: RePEc:eee:indorg:v:22:y:2004:i:5:p:633-645

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    Web page: http://www.elsevier.com/locate/inca/505551

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    1. Farrell, Joseph & Saloner, Garth, 1987. "Coordination Through Committees and Markets," Department of Economics, Working Paper Series qt5sn4b6v4, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Farrell, Joseph & Saloner, Garth, 1992. "Converters, Compatibility, and the Control of Interfaces," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 9-35, March.
    3. Farrell, Joseph & Saloner, Garth, 1986. "Standardization and variety," Economics Letters, Elsevier, vol. 20(1), pages 71-74.
    4. Michael Kende, 1998. "Profitability under an Open versus a Closed System," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(2), pages 307-326, 06.
    5. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
    6. Chou, Chien-fu & Shy, Oz, 1990. "Network effects without network externalities," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 259-270, June.
    7. Chou, Chien-fu & Shy, Oz, 1993. "Partial compatibility and supporting services," Economics Letters, Elsevier, vol. 41(2), pages 193-197.
    8. Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
    9. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
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    Cited by:
    1. Michal Grajek, 2003. "Estimating Network Effects and Compatibility in Mobile Telecommunications," CIG Working Papers SP II 2003-26, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    2. Netsanet Haile & Jorn Altmann, 2012. "Value Creation in IT Service Platforms through Two-Sided Network Effects," TEMEP Discussion Papers 201297, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2012.
    3. Corts, Kenneth S. & Lederman, Mara, 2009. "Software exclusivity and the scope of indirect network effects in the U.S. home video game market," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 121-136, March.
    4. Grajek, Michal, 2010. "Estimating network effects and compatibility: Evidence from the Polish mobile market," Information Economics and Policy, Elsevier, vol. 22(2), pages 130-143, May.
    5. Church, Jeffrey & Gandal, Neil, 2012. "Direct and Indirect Network Effects are Equivalent: A Comment on “Direct and Indirect Network Effects: Are They Equivalent?”," CEPR Discussion Papers 9097, C.E.P.R. Discussion Papers.
    6. María Fernanda Viecens, 2009. "Compatibility with Firm Dominance," Working Papers 2009-12, FEDEA.
    7. Nicholas Economides & Brian Viard, 2003. "Pricing of Complementary Goods and Network Effects," Working Papers 03-12, New York University, Leonard N. Stern School of Business, Department of Economics.
    8. Hirnle, Christoph & Hess, Thomas, 2005. "Bewertung unternehmensübergreifender IT Investitionen in Unternehmensnetzwerken: Ein Property-Rights basierter Zugang," Working Papers 4/2005, University of Munich, Munich School of Management, Institute for Information Systems and New Media.
    9. Kerstan, Sven & Kretschmer, Tobias & Muehlfeld, Katrin, 2012. "The dynamics of pre-market standardization," Information Economics and Policy, Elsevier, vol. 24(2), pages 105-119.
    10. Feng Zhu, 2008. "Ad-sponsored Business Models and Compatibility Incentives of Social Networks," Working Papers 08-20, NET Institute, revised Sep 2008.
    11. Christiaan Hogendorn & Ka Yat Yuen, 2004. "Platform Competition with “Must-Have” Components," Wesleyan Economics Working Papers 2004-003, Wesleyan University, Department of Economics.

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