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Article Dans Une Revue American Economic Journal: Microeconomics Année : 2020

The Value of Incumbency When Platforms Face Heterogeneous Customers

Résumé

We study competition for the market in a dynamic model with network externalities, focusing on the efficiency of market outcomes. We propose a representation of the strategic advantages of incumbency and embed it in a dynamic framework with heterogeneous consumers. Then, we completely identify the conditions under which inefficient equilibria with several platforms emerge at equilibrium; explore the reasons why these inefficient equilibria arise; and compute the value of incumbency and analyze why static models generally exaggerate it.
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Dates et versions

hal-03049041 , version 1 (09-12-2020)

Identifiants

Citer

Gary Biglaiser, Jacques Crémer. The Value of Incumbency When Platforms Face Heterogeneous Customers. American Economic Journal: Microeconomics, 2020, 12 (4), pp.229-269. ⟨10.1257/mic.20180225⟩. ⟨hal-03049041⟩
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