R&D incentives in compatible networks
Network externalities describe the phenomenon that a good becomes more valuable to each user the more other consumers use the same of a compatible product. Whereas most of the recent literature on network effects has focused on the adoption of products, this paper shows that network externalities can have important feedback effects on the incentives to carry out R&D and develop new products.
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Volume (Year): 65 (1997)
Issue (Month): 1 (February)
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