Winning while losing: Competition dynamics in the presence of indirect network effects

Markovich, Sarit; Moenius, Johannes

doi:10.1016/j.ijindorg.2008.10.006

Cited by 60 publications

(36 citation statements)

References 18 publications

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“…Markovich and Moenius (2006b) find that a firm's optimal investment depends predominantly on its quality level relative to its competitors on the same hardware, and on the quality level of all software firms on the same hardware relative to other hardware platforms. Markovich and Moenius (2006a) find that indirect network effects tie together the performance of firms on the same platform. 13 I first use stochastic process theory in order to find the communicating classes, and in all cases I find only one communicating class.…”

mentioning

confidence: 89%

Snowball: A dynamic oligopoly model with indirect network effects

Markovich

2008

Journal of Economic Dynamics and Control

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confidence: 89%

Snowball: A dynamic oligopoly model with indirect network effects

Markovich

2008

Journal of Economic Dynamics and Control

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“…The model can serve as a foundation for future research studying the consumer switching decision in other e‐commerce settings. Second, prior research on the lock‐in concept are either case‐based descriptive studies (e.g., Shapiro & Varian, 1999) or economic and analytical models (e.g., Schiff, 2003; Parker & Van Alystyne, 2005; Lee & Mendelson, 2007; Choi, Kim, & Lee, 2010; Markovich & Moenius, 2009; Zhao, Xia, Shaw, & Subramaniam, 2009). Our research is among the first to provide empirical validation of the lock‐in concept in the context of online auctions.…”

Section: Discussionmentioning

confidence: 99%

A Study of Online Auction Sellers’ Intention to Switch Platform: The Case of Yahoo!Kimo Versus Ruten_eBay*

et al. 2012

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The study of consumers' switching from one service provider to another has a long tradition in economics, information systems, and marketing. The emergence of electronic commerce presents new challenges in understanding consumers' switching intentions in the context of e-commerce in general and online auctions in particular. With the abundance of literature on online auctions, there is a surprising lack of research on auction sellers' intentions to switch from one online auction platform to another. Using the competition between Yahoo!Kimo and Ruten eBay, two leading auction platforms in Taiwan, as the backdrop, we developed a research model and collected empirical data based on this real case to study what factors influence auction sellers to switch to a competing service provider. We find that the higher the procedural switching costs, financial switching costs, relational switching costs, site design quality, or interaction quality, the lower the intention of an auction seller to switch to a competing auction service provider. A higher perceived transaction fee, however, leads to a higher switching intention.

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“…Markovich (2008) studies the conditions under which standardization in the hardware market arises and persists over time. Markovich and Moenius (2009) show that a successful software competitor raises the value of all software firms whose products run on the same platform in the sense that an unsuccessful firm may enjoy a windfall increase in its market value.…”

Section: The Software Approachmentioning

confidence: 98%