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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29466
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| Title: | Empirically Testing for Indirect Network Externalities in the LCD |
| Authors: | Livingston, Jeffrey - Bentley University
Ortmeyer, David - Bentley University
Scholten, Patrick - Bentley University
Wong, Wilson - Bentley University |
| Keywords: | HDTV, Internet, Connectivity, Compatibility, Indirect Network Externalities |
| Issue Date: | 2008 |
| Series/Report no.: | Net Institute Working Paper;08-40 |
| Abstract: | This paper examines price data on over 222 LCD televisions to estimate
indirect network effects arising from two sources. First, we conjecture
that the disconnect between the timing of when broadcasters are
required to convert to an only‐digital‐signal world and when television
manufacturers are required to have an ATSC digital tuner install on all
new televisions has created an indirect network effect whereby
television that are backward compatible with the NTSC analog QAM and
VSB‐8 systems have short‐run value. Over time, however, we argue that
the ATSC digital tuner will become more valuable. The second indirect
network effect we estimate stems from the number and types of ports
available on LCD televisions. In each case, we find statistically
significant evidence for the presence of indirect network effects in the
market for LCD televisions. |
| URI: | http://hdl.handle.net/2451/29466 |
| Appears in Collections: | NET Institute Working Papers Series
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