IDEAS home Printed from https://ideas.repec.org/a/ids/ijmnec/v1y2009i4p394-405.html
   My bibliography  Save this article

Quality choice of a new product development and network externality

Author

Listed:
  • Bonwoo Koo
  • Dong Eui Chang

Abstract

In a framework of hardware–software paradigm with network externality, this study analyses the resource allocation problem of a hardware firm, which is developing a new hardware system. By formulating a dynamic model of quality choice, this study shows that firm's long-run profit is sensitive to the network effect, especially to the provision of software varieties at the initial stage of development. The insights from this study can be applicable to the investment decision and resource allocation problems in rapidly developing network industries such as video console market or computer technology.

Suggested Citation

  • Bonwoo Koo & Dong Eui Chang, 2009. "Quality choice of a new product development and network externality," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 1(4), pages 394-405.
  • Handle: RePEc:ids:ijmnec:v:1:y:2009:i:4:p:394-405
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=32833
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmnec:v:1:y:2009:i:4:p:394-405. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID==259 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.