• Login
    View Item 
    •   Home
    • UA Graduate and Undergraduate Research
    • UA Theses and Dissertations
    • Dissertations
    • View Item
    •   Home
    • UA Graduate and Undergraduate Research
    • UA Theses and Dissertations
    • Dissertations
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

    All of UA Campus RepositoryCommunitiesTitleAuthorsIssue DateSubmit DateSubjectsPublisherJournalThis CollectionTitleAuthorsIssue DateSubmit DateSubjectsPublisherJournal

    My Account

    LoginRegister

    About

    AboutUA Faculty PublicationsUA DissertationsUA Master's ThesesUA Honors ThesesUA PressUA YearbooksUA CatalogsUA Libraries

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Investment in innovation in the presence of network economies.

    • CSV
    • RefMan
    • EndNote
    • BibTex
    • RefWorks
    Thumbnail
    Name:
    azu_td_9322678_sip1_m.pdf
    Size:
    3.075Mb
    Format:
    PDF
    Description:
    azu_td_9322678_sip1_m.pdf
    Download
    Author
    Atkinson, Lucy Patricia.
    Issue Date
    1993
    Keywords
    Dissertations, Academic.
    Economics.
    Committee Chair
    Hoffman, Elizabeth
    
    Metadata
    Show full item record
    Publisher
    The University of Arizona.
    Rights
    Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
    Abstract
    This research examines investment behavior within industries characterized by network economies. That is, industries in which the value of a product to consumers increases with the number of other consumers that purchase compatible products. I analyze indirect network economies by investigating the ability of firms, producing complementary products, to coordinate investment decisions over time. I also investigate the influence of direct network economies on the quantity-setting strategies of a durable good monopolist. When networks are present an incumbent technology has an advantage over an entrant, due to the value consumers place on an installed network of compatibility. This network can hinder the adoption of an innovation. Within industries characterized by indirect networks, strategic interdependencies exist as firms, who produce complementary products, invest in innovative technologies. Diffusion of innovations requires coordination, so that a new product might appear on the market accompanied by a minimal network of compatible complementary products. Game theoretic techniques are used to model this coordination process as it evolves over time. To determine if observed behavior is consistent with Nash refinements of selection among Pareto-rankable Nash equilibrium paths, economic experiments were conducted. The experimental data reveals that in a time-dependent multi-stage coordination game, subjects are unable to focus on the Pareto-dominant Nash equilibrium (PDNE) strategy path. However, given repetition subjects converge toward it. The data show that a higher cost of exiting the existing technology or a higher level of strategic uncertainty decreases the level of coordination on the PDNE strategy path. I also investigate the impact of a network parameter on a durable good monopolist's quantity-setting strategies. This two-period model reveals that the presence of network economies increases prices in both periods. Thus, the monopolist's profits increase relative to a model without network economies. Finally, I discuss how the combination of durability and network economies affect investment in incompatible product upgrades. When network economies exist, a firm must anticipate the interdependencies and uncertainties that exist among consumers. Thus, if sufficient demand for product quality exists relative to demand for network benefits, diffusion of the innovation should occur.
    Type
    text
    Dissertation-Reproduction (electronic)
    Degree Name
    Ph.D.
    Degree Level
    doctoral
    Degree Program
    Economics
    Graduate College
    Degree Grantor
    University of Arizona
    Collections
    Dissertations

    entitlement

     
    The University of Arizona Libraries | 1510 E. University Blvd. | Tucson, AZ 85721-0055
    Tel 520-621-6442 | repository@u.library.arizona.edu
    DSpace software copyright © 2002-2017  DuraSpace
    Quick Guide | Contact Us | Send Feedback
    Open Repository is a service operated by 
    Atmire NV
     

    Export search results

    The export option will allow you to export the current search results of the entered query to a file. Different formats are available for download. To export the items, click on the button corresponding with the preferred download format.

    By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.

    To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export. The amount of items that can be exported at once is similarly restricted as the full export.

    After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.