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Compatibility, Business Strategy and Market Structure - a Selective Survey

Author

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  • Harald Wiese

    (Wirtschaftswissenschaftliche Fakultõt, Universitõt Leipzig, Leipzig, Germany)

Abstract

Compatibility influences business strategy and market structure and can itself be the outcome of market forces. This survey tries to summarise the field of compatibility with respect to business strategy. Two business strategy questions are the focus of survey. First, what kind of behaviour is effective for entry deterrence? Second, what are the incentives for compatibility or incompatibility? The general underlying mechanism of the models are surveyed without reporting the specific modelling approach chosen by authors. It is found that a rather large number of effects can be identified.

Suggested Citation

  • Harald Wiese, 1997. "Compatibility, Business Strategy and Market Structure - a Selective Survey," Homo Oeconomicus, Institute of SocioEconomics, vol. 14, pages 283-308.
    • Handle: RePEc:hom:homoec:v:14:y:1997:p:283-308
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    Cited by:

    1. Conrad, Klaus, 2004. "Network effects, Compatibility and the Environment : The Case of Hydrogen Powered Cars," Discussion Papers 613, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    2. Woeckener, Bernd, 1998. "Network effects, compatibility decisions, and monopolization," Tübinger Diskussionsbeiträge 125, University of Tübingen, School of Business and Economics.
    3. Conrad, Klaus, 2004. "Price Competition and Product Differentiation when Goods have Network Effects," Discussion Papers 612, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    4. Mikko Mustonen, 2005. "Signalling cost with investment in compatibility," Netnomics, Springer, vol. 7(1), pages 39-57, April.
    5. Harald Wiese, 2002. "Strategic Trade Policy in the Presence of Network Effects," German Economic Review, Verein für Socialpolitik, vol. 3(2), pages 155-183, May.
    6. repec:bla:germec:v:7:y:2006:i::p:339-361 is not listed on IDEAS
    7. Klaus CONRAD, 2005. "Price Competition and Product Differentiation when Goods have Network Effects," Industrial Organization 0502002, University Library of Munich, Germany.
    8. Klaus Conrad, 2006. "Price Competition and Product Differentiation when Goods have Network Effects," German Economic Review, Verein für Socialpolitik, vol. 7(3), pages 339-361, August.

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