Vertical Product Differentiation with Network Externalities

• Main Authors: Ya-Yuan Chan, 詹雅媛
• Other Authors: Cheng, Yi-Ling
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/x8qkns

碩士 === 國立中山大學 === 經濟學研究所 === 106 === This paper builds a duopoly model with network externality and vertical product differentiation to examine the effects of network externality on the product quality, network size and the profits of high- and low-quality firms under different types of competition. The results indicate that, under price competition, when network externality increases, the low-quality firm lowers its product quality while the high-quality firm first decreases and then increases its product quality. By contrast, under quantity competition, the low-quality firm lowers its product quality while the high-quality firm increases its product quality.