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- Network Industries
Network Industries
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Network industries are characterised by existence ofpositive consumption externalities, referred to asnetwork externalities. This book deals with theeconomic aspects of some technological issues inindustries that exhibit network externalities. Thework particularly focuses on markets for systems. Acollection of two or more components that work onlywhen used together forms a system. Systems exhibitnetwork externality, which arises due to thecomplementarities between the components. Firms doingbusiness in the markets for systems behavestrategically while deciding on compatibility betweencompeting products and / or technologies. Adoption oftechnology or investment in R&D, may also be astrategic decision. While addressing three differentissues, the author analyses the implications of suchstrategic behaviour. The analysis is game theoretic.Researchers and scholars of Network Economics, Microeconomics, Business Economics, IndustrialOrganization Theory and Strategy will find the workuseful.
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