Title page for ETD etd-10162001-155423

Type of Document Master's Thesis
Author Yousef-Sibdari, Soheil
Author's Email Address ssibdari@vt.edu
URN etd-10162001-155423
Title The Behavior of Technology Suppliers in the Presence of Network Externalities.
Degree Master of Arts
Department Economics
Advisory Committee
Advisor Name Title
Giles, Robert H. Jr. Committee Chair
  • Technology Suppliers
  • Network Externalities
  • Information Goods
  • Microeconomics Theory
  • Industrial Organization
Date of Defense 2001-05-20
Availability unrestricted
This study surveys the theoretical literature dealing with the behavior of technology suppliers in the presence of network externalities with a focus on economies of compatibility setting and promotional pricing. Positive network externalities arise when a good is more valuable to a user because more users adopt the same good or compatible ones. There are two issues with network externalities: demand side and supply side. This paper focuses on the supply side, and it relates the way that technologies are chosen and promoted. On the supply side, product compatibility choice, technology sponsorship, penetration pricing, and product pre-announcement are the competing strategies of firms operating in a market with network externalities. Among these strategies, compatibility choice decisions and promotional pricing are presented in the two different subsections, which follows.
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