Description

Network industries are characterised by existence of
positive consumption externalities, referred to as
network externalities. This book deals with the
economic aspects of some technological issues in
industries that exhibit network externalities. The
work particularly focuses on markets for systems. A
collection of two or more components that work only
when used together forms a system. Systems exhibit
network externality, which arises due to the
complementarities between the components. Firms doing
business in the markets for systems behave
strategically while deciding on compatibility between
competing products and / or technologies. Adoption of
technology or investment in R&D may also be a
strategic decision. While addressing three different
issues, the author analyses the implications of such
strategic behaviour. The analysis is game theoretic.
Researchers and scholars of Network Economics,
Microeconomics, Business Economics, Industrial
Organization Theory and Strategy will find the work
useful.