Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, November 21, 2019

Note on the Excess Entry Theorem in the Presence of Network Externalities

By: Tsuyoshi Toshimitsu (School of Economics, Kwansei Gakuin University)
Abstract: We reconsider the excess entry theorem in the presence of network externalities under Cournot oligopoly. We demonstrate that if the strength of a network externality is larger (smaller) than a half, the number of firms under free entry is socially too small (too large), based on the second-best criteria.
URL: http://d.repec.org/n?u=RePEc:kgu:wpaper:195&r=com

https://lawprofessors.typepad.com/antitrustprof_blog/2019/11/note-on-the-excess-entry-theorem-in-the-presence-of-network-externalities.html

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