Network Externalities and Information Strategies of Corporations

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  • ネットワーク外部性と企業の情報戦略
  • ネットワーク ガイブセイ ト キギョウ ノ ジョウホウ センリャク

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<p>There are some markets where the utility which a user derives from consumption of a product increases with the number of other users utilizing it among the markets of various products, for a user often places higher value on a product if others also use it. When this occurs, the market is said to display network externalities.</p><p>The purpose of this paper is to elucidate the nature of the market of this type and clear up the points to attain the competitive advantage there. In such a market corporations perform very interesting information strategies. Though the problem of network externalities has lately attracted considerable attention, there is no systematic study or well-organized treatise on these information strategies. This paper clarifies the information strategies in such a market.</p><p>To be concrete, corporations preannounce there that they will put a new product on sale and it will be compatible with the product now in use. They sometimes make public that they will build a new factory to manufacture the new product. They also emphasize that their product on sale is gaining the largest share in the market in order to activate bandwagon effect.</p>

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