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Most Downloaded Articles
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- Optimal Monopoly Price Paths with Expanding Networks by Gabszewicz, Jean and Garcia, Filomena
- The Economics of the Online Advertising Industry by Evans, David S.
- Merchant or Two-Sided Platform? by Hagiu, Andrei
- Failure to Launch: Critical Mass in Platform Businesses by Evans, David S. and Schmalensee, Richard
Endogenous Switching Costs and Exclusive Systems: A Reply
1City University of London, B.Garcia-Marinoso@city.ac.uk
Citation Information: Review of Network Economics. Volume 2, Issue 1, Pages –, ISSN (Online) 1446-9022, DOI: 10.2202/1446-9022.1016, March 2003
- Published Online:
In a critique of my paper "Technological Incompatibility, Endogenous Switching Costs and Lockin", Haucap (2003) argues that its applicability for policy purposes is limited by its reliance on the assumptions of no market growth and of the firms' ability to commit to technological compatibility. In this note, I show that the results in the paper still hold with market growth and I argue that technological compatibility is a time consistent strategy.