| Article ID: | iaor1995196 |
| Country: | United States |
| Volume: | 27 |
| Issue: | 1 |
| Start Page Number: | 73 |
| End Page Number: | 80 |
| Publication Date: | Feb 1993 |
| Journal: | Transportation Science |
| Authors: | Palma Andr de, Leruth Luc |
The authors study ‘positive network externalities’ in a horizontally differentiated industry. They show that a symmetric Nash equilibrium in prices exists if and only if the degree of product differentiation is sufficiently large. The authors also study the impact of larger or lower compatibility on equilibrium prices.