Research Seminars

Entrepreneurs: Jacks of all Trades or Hobos?

Speaker: Thomas Åstebro
University of Toronto

12 December 2007 - From 11:00 to 12:30


Dynamics of Platform Competition: Exploring the Role of Installed Base, Platform Quality and Consumer Expectations

Speaker: Feng Zhu
Harvard Business School

29 November 2007 - From 09:45 to 11:15


This paper seeks to answer three questions. First, which drives the success of a platform, installed base, platform quality or consumer expectations? Second, when does a monopoly emerge in a platform-based market? Finally, when is a platform-based market socially efficient? We analyze a dynamic model where an entrant with superior quality competes with an incumbent platform, and examine long-run market outcomes. We find that the answers to these questions depend critically on two parameters: the strength of indirect network effects and consumers' discount factor of future applications. In addition, contrary to the popular belief that indirect network effects protect incumbents and are the source of market inefficiency, we find that under certain conditions, indirect network effects could enhance entrants' quality advantage and market outcomes hence could be more efficient with stronger indirect network effects. We empirically examine the competition between the Xbox and PlayStation 2 consoles. We find that Xbox has a small quality advantage over PlayStation 2. In addition, the strength of indirect network effects and consumers' discount factor in this market are within the range in which platform success is driven by quality advantage and the market is potentially efficient.
Counterfactual experiments suggest that PlayStation 2 could have driven Xbox out of the market had
the strength of indirect network effects more than doubled or had consumers' discount factor increased
by fifty percent.

Manufacturing excitement : Aesthetic innovation in commoditized technological industries

Speaker: Micki EISENMAN
Baruch College New-York

28 November 2007 - From 16h30 to 18h00

« Beyond Competitive Advantage : What can theories of Competitive Strategy explain ? »

Amsterdam Business School

24 October 2007 - From 16h30 to 18h00


Speaker: Andrew SHIPILOV

10 October 2007 - From 16h30 to 18h00