Product quality, network effects, and efficiency of network markets.

ABSTRACT: The objective of our study is to capture the roles of product quality and network effects in the success and efficiency of network markets under strategic settings that defined in terms of market share as a strategic factor and profit as a financial indicator. The research paper shows that the efficiency of network markets depends heavily on the phase adjustment of competition models and the balance of network effects and product quality among enterprises. the network market is always efficient in price competition, but not true in quantity competition when the network effect difference is sufficiently large or/and the quality difference is relatively small, then network effects may play a perverse role in market efficiency. The main findings reveal that network effects do not always enhan

SUBMITTER: Zhao D 

PROVIDER: S-EPMC9637856 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature