The effect of Crowding Network Externalities on Product Compatability in Hardware Industry

• Main Authors: Tong-Jyu GUO, 郭同局
• Other Authors: Ruey-Yih Lin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/84602697405653197080

碩士 === 華梵大學 === 工業工程與經營資訊學系碩士班 === 97 === In this paper, we based on Shy’s (2001, chap.2) model to analyze the impact of the crowding network externalities and the asymmetric consumers brand-oriented on the market price, outputs, profits, social welfare and the choice of product compatibility in hardware industry. We have the following conclusions: 1. In the duopoly market with crowding network externalities, when the number of users is large enough, the firms will produce incompatible products to maximize its profits. But from the point of view of maximizing the social welfare, the firms should produce compatible products. 2. When different brand-oriented consumers are asymmetric, the two competing hardware firms will produce compatible products to maximize its profits as well as to reach the maximizing social welfare at the same time.