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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28420
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| Title: | Strategic Product Pre-announcements in Markets with Network Effects |
| Authors: | Choi, Jay Pil - Michigan State University
Kristiansen, Eirik Gaard - Michigan State University
Nahm, Jae - HKUST, Hong Kong |
| Keywords: | product pre-announcements, network effects, cheap talk, reputation |
| Issue Date: | 2005 |
| Series/Report no.: | NET Institute Working Paper;05-09 |
| Abstract: | It is a widely adopted practice for firms to announce new products well
in advance of actual market availability. The incentives for
pre-announcements are stronger in markets with network effects because
they can be used to induce the delay of consumers' purchases and
forestall the build-up of rival products' installed bases. However, such
announcements often are not fulfilled, raising antitrust concerns. We
analyze the effects of product pre-announcements in the presence of
network effects when firms are allowed to strategically make false
announcements. We also discuss their implications for consumer welfare
and anti-trust policy. |
| URI: | http://hdl.handle.net/2451/28420 |
| Appears in Collections: | NET Institute Working Papers Series
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