- Consulting Editors
- The Oxford Handbook of Managerial Economics
- Managerial Economics: Introduction and Overview
- Managerial Economics: Present And Future
- Market Power: How Does it Arise? How is it Measured?
- Advances in Cost Frontier Analysis of the Firm
- Supply Chain Design for Managing Disruptive Risks
- Combinatorial Auctions
- Game and Information Theory in Modern Managerial Economics
- Issues in the Analysis of Time, Risk, and Uncertainty
- Behavioral Economics and Strategic Decision Making
- Advances in Pricing Strategies and Tactics
- Product Distribution and Promotion: An Analytical Marketing Perspective
- Market Imperfections and Sustainable Competitive Advantage
- The New Managerial Economics of Firm Growth: The Role of Intangible Assets and Capabilities
- Strategies for Network Industries
- Internalization Theory as the General Theory of International Strategic Management Past, Present and Future
- Competitive Strategy in the Nonprofit Sector
- Organizational Design and Firm Performance
- Design and Implementation of Pay for Performance
- Vertical Merger
- The Evolving Modern Theory of the Firm
- Financing the Business Firm
- Corporate Governance and Firm Performance
- Managing Workplace Safety and Health
- Merger Strategies And Antitrust Concerns
- On the Profitability of Corporate Environmentalism
- Name Index
- Subject Index
Abstract and Keywords
Firms' strategic behavior and managerial decision-making in network industries may differ from those in other industries. This happens because an increase in the demand for one brand need not reduce the demand for competing brands. In addition, consumers may be locked-in a particular standard, so they may bear a cost of switching to competing brands. Therefore, starting as early as from the design stage, managers must evaluate the implications of their choices of prices, technology standards, and the degree of compatibility of their own brands with the standards adopted by firms producing competing brands. This article analyzes some of the major issues facing managers operating in modern network industries.
Oz Shy is the Senior Economist in the Research Department at the Federal Reserve Bank of Boston.
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