Abstract
Previous authors have suggested inviting competition as a solution to the credibility issues that arise when a new network good is introduced. We suggest an alternative remedy of pre-producing the good. The two strategies are compared, as are combinations of these two strategies in two different manners. The comparison yields a deeper understanding about how and why each strategy works.
| Original language | English |
|---|---|
| Article number | 4 |
| Journal | Review of Network Economics |
| Volume | 9 |
| Issue number | 1 |
| DOIs | |
| State | Published - 26 Feb 2010 |
Bibliographical note
Funding Information:Author Notes: We thank an anonymous referee and the editor for helpful comments. We thank the Adar Foundation at the Department of Economics at Bar-Ilan University for financial support.
Funding
Author Notes: We thank an anonymous referee and the editor for helpful comments. We thank the Adar Foundation at the Department of Economics at Bar-Ilan University for financial support.
| Funders | Funder number |
|---|---|
| Department of Economics at Bar-Ilan University | |
| ADA Foundation |
Keywords
- inviting competition
- network externalities
- network market
- pre-production